IMAP (The Institute of Managed Account Professionals Ltd) in conjunction with Milliman has released the latest data for balance date 31 December 2023 in its 6 monthly Managed Accounts FUM Census long term series.

In the 6 months to 31 December 2023 balance date, Funds Under Management (FUM) in Managed Accounts increased by 20.47% to $194.85 bn (Note: on an annual basis this is a $50.3 bn increase on 31 December 2022’s figure of $144.5 bn).

Toby Potter – Chair of IMAP said, “Strong inflows of over $15 bn were reported for the last half of 2023. The widespread adoption of managed accounts by licensees, their advisers, and by their clients is creating efficiencies in advice practices, and benefitting from professional portfolio management and the ability to manage diversified portfolios more effectively.

Victor Huang, Milliman’s Practice Leader, Australia advised that “The investment markets have recorded improved growth in the second half of 2023 with a 7.6% increase in the value of the ASX / S&P 200 Accumulation Index, giving an annual growth rate of 12.11% in 2023.

The subsiding inflation data, receding recession risk, along with the tech sector growth were key drivers for the strong equity performance and provides a positive platform for growth in 2024. Concerns around service inflation remaining elevated and geopolitical uncertainty around the US election continue to be potential headwinds” Huang adds.

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

“The Platform providers’ expansive use of SMAs as a vehicle to service the adviser/licensee market help drive FUM growth. Managed discretionary accounts (MDAs) are continuing to grow too helped by the tailoring, efficient implementation, & operation of MDA programs” said Potter.

“The FUM Census collected data from 46 large & smaller organisations with varied offerings, which adds up to a healthy competitive market with a broad range of offerings to meet differing needs from both client investors and advisers” says Potter Note Organisations which act as investment managers (for example on SMA platforms) are included through the SMA issuer.

Chart One – Annual Growth in Managed Accounts (Funds under Management) from December 2016 to $194.85 bn in December 2023

Chart Two – Managed Accounts FUM growth annually ($ billions) by Category from December 2018 to December 2023

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