Investors stick with managed accounts despite volatility

Latest research shows inflows pushed managed accounts through strong headwinds in the second half of 2018.

The Institute of Managed Accounts Professionals' latest six monthly Managed Accounts FUM Census shows net fund inflows in the second half of last year were worth around $2.5 billion, a 4% increase on the sector's total funds under management.

According to IMAP, the result is encouraging, given the sector faced difficulties on two fronts towards the end of 2018 - the Royal Commission's potential recommendations and market volatility.

IMAP chair Toby Potter said the institute's latest data - produced in conjunction with Milliman - shows investors paid little attention to the headwinds.

"The census returns tell us that very few investors became worried by the market volatility and other news," Potter said.

"The vast majority of investors clearly had a good understanding of their investment strategy, and that they are working closely with their investment adviser to maintain their strategy to achieve their long term goals.

"This speaks volumes for the "value added" service provided by financial advisers to their clients."

Total funds within managed account structures now stands at $62.12 billion, with managed discretionary accounts taking up the bulk of FUM at $26.52 billion, despite decreasing by around $820 million over the second half of 2018.

Read more: IMAPManaged Accounts FUM CensusToby PotterInstitute of Managed Accounts ProfessionalsMillimanRoyal Commission
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