MLC managed account strategies surpass $1bn FUM

MLC Asset Management announced last week that its managed account strategies have surpassed $1 billion in funds under management (FUM) in less than three years since inception

Most recently, conservative and high growth options were added to the range of managed account strategies, which MLC said was in response to market demand from advisers.

According to MLC’s direct capabilities and specialist investment services general manager, Jason Komadina, the managed account strategies combined the firm’s “best thinking on asset allocation with a disciplined investment process”.

“Our goal with these strategies was to create a high-performing solution that would be easy for advisers to work with and explain to clients,” Mr Komadina added.

“We have found this is in line with the broader industry wanting to make the advice journey more efficient and seamless for both advisers and their clients.”

Funds under management in managed accounts hit a record high in the six months to 31 December 2022, according to data by the Institute of Managed Account Professionals (IMAP) and Milliman.

Specifically, managed accounts FUM reached $144.5 billion, up 9.8 per cent when compared with December 2021’s figure of $131.65 billion.

In particular, separately managed accounts (SMA) dominating the managed account sector with a 52 per cent market share.

“It’s exciting to see the managed accounts industry go from strength to strength,” MLC portfolio manager Anthony Golowenko said.

“Advisers value the access these strategies provide to their clients, so advisers can professionally manage strategies with transparency and facilitate direct ownership of underlying investments.”

To this end, Mr Golowenko said that MLC see’s the $1 billion milestone as the beginning of its managed account strategies journey.

Through an active approach, Mr Golowenko continued, MLC moved to increase the resilience of its portfolios last year in the face of rapid interest rate rises, particularly in its diversified fixed income capability.

“It’s this great flexibility that sees us well equipped to position the portfolios for what could be a more turbulent year ahead,” he concluded.