IMAP’s Census of Managed Account FUM in conjunction with Milliman Australia shows that managed accounts FUM reached $194.8 billion as at 31 December 2023 due to an increase of $33.1 billion in 6 months with growth from both inflows and market gains.

In the 6 months to 31 December 2023 balance date, Funds Under Management (FUM) in Managed Accounts increased by 20.47 per cent to $194.85 billion.

IMAP chair Toby Potter said inflows of over $15 billion were reported for the last half of 2023.

“The widespread adoption of managed accounts by licensees, their advisers, and their clients is creating efficiencies in advice practices, and benefitting from professional portfolio management, plus the ability to manage diversified portfolios more effectively,” Potter said.

Milliman practice leader Australia Victor Huang said investment markets have recorded improved growth in the second half of 2023 with a 7.6 per cent increase in the value of the ASX / S&P 200 Accumulation Index, giving an annual growth rate of 12.11 per cent 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,” Huang said.