The latest data in IMAP’s six-monthly Managed Accounts FUM Census long-term series, showed managed funds benefiting from an increase of $15.8 billion in FUM, advancing on the $95.2 billion reported on 31 December 2020.
The majority of FUM sat within SMA/MIS with $51.09 billion recorded, an 82 per cent increase on the year prior. Elsewhere, $48.01 billion sat within MDA services (a 36 per cent rise) and $11.91 billion was attributed to other services (a fall of 27 per cent).
“The significance is not just that managed accounts have now been used by advisers for 24 plus years, but that in the past five years alone the value of clients’ investment advised through Managed Accounts has increased by $80bn,” said Toby Potter, chair of IMAP.
“We can remain confident that the managed accounts advice and investment sector is contributing strongly to wealth management of Australians of all ages.”
IMAP highlighted the impressive nature of this gain, as challenging conditions continue to impact the managed funds space.
“The managed account sector has been challenged by market conditions, regulatory reform, restructuring of the adviser market and continued consolidation through acquisitions, advisers moving between licensees, competition to justify fees and striving for consistent investment performance from investment managers,” said Mr Potter.
Despite these conditions, a positive investment environment during the COVID-19 recovery period within Australia was said to have contributed to the increase of funds under management.
“The investment markets have kept up the positive tone for 12 months now as businesses adapt to the changing environment,” said Victor Huang, Milliman’s principal and head of investment solutions Asia Pacific advised.
“The value of the ASX / S&P 200 Accumulation Index rose 12.9 per cent over the period, (compared with the 13.2 per cent increase in the prior six months)”.
The ASX 200 currently sits at 7,437.30, an improvement of 26.07 per cent on this time last year.
