INTHEBLACK September 2026 - Flipbook - Page 26
F E AT U R E
“Across all financial advisers, 31 per cent of new inflows
are going into a managed account structure. We also track
adoption rates: 61 per cent of advisers are now using managed
accounts, another 13 per cent are considering them and
a fairly stable 18–19 per cent are not users.”
PAUL McGIVERN CPA, INVESTMENT TRENDS
The other, less commonly used structure is
the managed discretionary account (MDA).
Like SMAs, investors can access a broad
range of investment options and still own the
underlying securities. They also give licensed
providers the discretionary authority to
make investment decisions, including trades,
on behalf of their clients within an agreed
investment program.
stronger governance and more scalable
business models.”
Just how popular managed accounts have
become is evident from the massive growth
in funds under management (FUM) in SMAs
and MDAs. According to data from the
Institute of Managed Account Professionals
(IMAP) and Milliman, managed account FUM
totalled A$30.8 billion a decade ago. By the
end of 2019, it had grown to A$79.3 billion.
Over the course of 2025, managed account
FUM rose to A$292.9 billion.
IMAP’s chair, Toby Potter, describes
the Australian managed accounts market
as being in the maturity phase. “One of
the things managed accounts have done,
as funds under management have grown
toward the current amount, is create
opportunities for organisations to provide
portfolio management services that did
not exist before.
“The market has seen the entry of very
large organisations like BlackRock, Vanguard
and Betashares at the passive, ETF-based
AN EVOLVING GROWTH STORY
Recent research published by State Street
Investment Management and Investment
Trends notes that more than 60 per cent of
Australian advisers are now using managed
account products.
“Managed accounts continue to reshape
the way financial advice is delivered in
Australia,” says State Street’s model portfolio
strategist, Sinead Schaffer. “What began
as a specialist portfolio implementation
tool has evolved into a core operating
framework for many advice practices,
supporting better client outcomes,
GROWTH IN MANAGED ACCOUNTS
April 2015–December 2025
$ Billions
300
300
250
250
200
200
150
150
100
100
50
50
0
0
Apr
2015
Dec
2016
Dec
2017
Dec
2018
Dec
2019
Dec
2020
Source: IMAP/Millman FUM Census, as at 31 December 2025
26 INTHEBLACK September 2026
Dec
2021
Dec
2022
Dec
2023
Dec
2024
Dec
2025
