Results out for IMAP Milliman Managed Account FUM Census as at 31 Dec 2020

IMAP announces that Managed Account FUM nears $100bn on 31 December 2020

The latest IMAP Managed Account Census reveals FUM grew stronger in the second half of 2020 aided by positive funds inflow and 13.2% leap in ASX Accumulation Index


IMAP (The Institute of Managed Account Professionals Ltd) in conjunction with Milliman has released the latest data in its 6 monthly Managed Accounts FUM Census series (now running for over 6 years). 

As at 31 Dec 2020 Funds Under Management (FUM) in Managed Accounts stood at $95.2 bn,
an increase of $15.49bn in the 6 months from the 30 June 2020 FUM total of $79.71 bn.

The reported Net Funds Inflow from 30 June 2020 to 31 Dec 2020 was $6.97 bn.

Victor Huang, Milliman's Principal & Head of Investment Solutions Asia-Pacific advised that “The investment markets for the 2nd half of 2020 were significantly more positive than the 1st half. The value of the ASX / S&P 200 Accumulation Index rose 13.2% over the period, (compared with the decrease of 10.42% decrease in the prior 6 months). This will have materially advanced the value of holdings as Australian equities make up a significant share of assets in both direct and managed fund form”.

Toby Potter Chair of IMAP said “This result is an important sign that the managed accounts sector is contributing strongly to the wealth management for Australians.

Considering that a sizeable portion of advisers’ clients are retirees and draw out money from their investments, the overall growth from new inflows and increases in investment values demonstrates that the Managed Account frameworks of platforms and investment managers is an increasingly central part of the way advisers deliver value to clients.”

In answering the question of where to from here? Potter said “Recently the Managed Account sector has experienced consolidation through acquisitions, advice groups moving between providers, and competitive jostling and striving for consistent investment performance from investment managers. It seems to me that the sector is stronger and better positioned to continue to improve the service to clients, and this is essential given the uncertainty of markets and world events of the past year. We are seeing considerable focus on innovation from providers and managers to continue to develop greater capability.”

The FUM results split between types of managed accounts is as follows:

Managed

Account Category

31 Dec 2020

($ billions)

Incr / Decr $

($ billions)  Dec 2019 to Dec 2020

Incr / Decr
Percentage%
Dec 2019 to Dec 2020

30 June 2020

($ billions)

31 Dec 2019

($ billions)

SMA / MIS 

$45.09

$15.77

54%

$28.06

$29.32

MDA services

$39.86

$8.72

28%

$35.28

$31.14

Other services

$10.25

-$8.58

-46%

$16.37

$18.83

Total   

$95.20

$15.91

20%

$79.71

$79.29

 

“The significant jump in the SMA/MIS category reflects a one-off legal transition of a large platform’s FUM from the “Other Services” category as it changed the legal structure under which it operated, in addition to organic and market growth.” said Potter.

“I am pleased to report that overall, we have maintained a total of 47 companies participating in the latest FUM Census. I thank them for their efforts, and I encourage all organisations offering Managed Account services to participate in IMAP’s Census including the few who were unable to take part this time due to the pressures of “reporting season” and other reasons.” said Toby Potter.

Participants range from individual licensees to the large platforms, banks, and MDA Providers.

Note Organisations which act as investment managers (for example on SMA platforms) are included through the SMA issuer

Growth in Managed Accounts Funds under Management from 2015 to Dec 2020 ($ billions)

 

Category of Managed Accounts Chart showing FUM growth ($ billions) June 2017 to Dec 2020

 



Explanation of the 3 series  SMA’s are Dark Red, MDA ‘s are Green, Other Services include IDPS and IMA are Blue

IMAP wishes to expressly thank all census contributors - a number of whom are listed below
(by permission):

 Accordius

Macquarie

 AMP

Mainstream Group

 BT Panorama

Mason Stevens

 Cameron Harrison Private

Marcus Today

 Colonial First State

MLC Asset Management

 DNR Capital

Netwealth

 EC Pohl & Co 

Praemium (incl. Powerwrap data)

 Elston

Ralton Asset Management

 Fortnum Private Wealth

Sentinel Group

 HUB4

WealthO2

 Implemented Portfolios

Xplore Wealth

IOOF

 


About IMAP 
https://imap.asn.au
The Institute of Managed Account Professionals (IMAP) is the only industry body for advisers, managers, providers and other businesses actively involved in offering or supporting Managed Accounts.

IMAP provides its subscribers and supporters with:

  • Access to the latest developments in managed account services
  • Education, training and access to professionals at all levels
  • Representation as the voice of the managed account industry able to represent its interests to regulators
  • Networking opportunities for advisers and licensees interested or involved in managed accounts

About Milliman

Milliman is a global actuarial firm and among the world’s largest providers of independent actuarial and related products and services.  In Australia, Milliman specialises in integrated retirement solutions—providing data analytics, financial modelling software and financial risk management services. Founded in 1947 Milliman is a global firm of more than 3,800 employees operating from 60 offices across the Americas, Europe, Africa, Asia, Australia and the Middle East. For further information, visit https://au.milliman.com/en/

Contact Details

Milliman

IMAP

Victor Huang, Principal & Head of Investment Solutions Asia-Pacific

M: 0433 383 580

E: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

Toby Potter, Chair

M: 0414 443 236

E:  This email address is being protected from spambots. You need JavaScript enabled to view it.

 

Craig Dewhurst, IMAP Data Manager

T: 02 8003 5077

E: This email address is being protected from spambots. You need JavaScript enabled to view it.

 Note You can view past related FUM census news updates by clicking on category tags below

© 2021 Reproduction Rights: This data is Copyright Institute of Managed Account Professionals Ltd (IMAP).
Use of this data in publications is subject to written permission from IMAP

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