Separately managed accounts FUM jumps 35% in 2024

In its FUM census, the Institute of Managed Account Professionals (IMAP), in conjunction with Milliman, reported a steady increase in managed accounts to $232.77 billion for the six months to 31 December 2024 – a $27.19 billion increase – with net inflows of $14.35 billion.

This marks a $43.92 billion (23.2 per cent) annual increase on the previous 12-month period, which reported $188.85 billion in funds under management (FUM) for managed accounts.

Separately managed accounts (SMA) and managed investment schemes, in particular, reported considerable growth with an annual increase of 35.9 per cent, up $39.17 billion from $108.82 billion at 31 December 2023 to $147.99 billion at 31 December 2024.

Meanwhile, managed discretionary account (MDA) services hit $58.28 billion, up $2.6 billion (4.7 per cent), and “other services” reported a $2.11 billion (8.6 per cent) increase to $26.50 billion.

IMAP chair Toby Potter noted the continued ability of the managed accounts industry to deliver for investors as the sector has grown over the last decade

“SMAs remain the largest share of the market at 64 per cent share, with managed discretionary accounts steady at 25 per cent of managed account FUM,” Potter said.

“The leading eight organisations managing $10 billion-plus in FUM reported six months ago have held their position, but three organisations are closing in on this milestone.”

The chair added: “Very good investment performance together with inflows of $14.35 billion in the second half of 2024 added to the strong position the managed account industry has delivered as it reaches full maturity in the 10 years IMAP has been reporting market figures.”

Despite the economic challenges of the last 12 months, Milliman practice leader, Australia, Victor Huang said the market has continued to provide positive outcomes for managed account investors.

“The investment markets recorded strong growth in the latter half of calendar 2024 with a 6.9 per cent increase in the value of the ASX/S&P 200 Accumulation Index, giving an annual growth rate of 11.1 per cent increase in the year from January to December 2024,” Huang said

“This second half of 2024 saw inflation largely under control and falling globally, plus signs of growth appeared in the largest economies. Strong equity performance was a feature, with interest in private equity heightening as the impact of lower inflation began to feed into fixed income markets.”