3 in 5 advisers make managed accounts mainstream

Mike Taylor

Managing Editor and Publisher

23 March 2026

As the Australian Securities and Investments Commission (ASIC) continues to consider the regulatory settings around managed accounts, new research has reinforced continuing strong take-up on the part of financial advisers.

The research undertaken by Investment Trends for State Street Investment Management has asserted that adviser usage of managed accounts is now mainstream with three in five advisers already using them and another 13% considering doing so.

Further, the research has found that managed accounts now anchor core portfolio construction, having overtaken other products and with the average share of core investment held within managed accounts having climbed to 66%.

Just as importantly, the research has pointed to a strong correlation between the popularity of managed accounts and that of exchange traded funds (ETFs) with the research noting that advisers are increasingly favouring ETFs over direct shares for new client inflows.

The research, which points strongly to the degree to which advisers are inkling towards outsourcing managed accounts allocation, indicates the reasons why major players such as Generation Development Group (GDG) have invested so heavily in the area via Lonsec and Evidentia.

Commenting on the research, State Street IM vice-president and Model Portfolio Strategist in Asia Pacific, Sinead Schaffer told Financial Newswire that advisers were becoming increasingly confident in their use of managed accounts.

Sinead Schaffer, State Street

Further, she noted that in volatile times geopolitical times such as those being experienced at the moment, advisers were understanding that managed accounts help support long-term investment discipline while simplifying portfolio management and rebalancing.

Investment Trends chief executive, Eric Blewitt emphasised his company’s findings that financial advisers remain attracted to the efficiency gains than can be derived.

“As managed accounts move into the core of advice delivery, advisers are reporting benefits that extend well beyond investment implementation,” he said.

“Many cite easier portfolio monitoring and access to institutional‑quality investment management as key client benefits, while practice benefits – particularly simplified management, time savings, and reduced compliance workload – are reinforcing managed accounts as an essential operating tool for advice businesses,” Blewitt said.

The research states that when recommending managed accounts, advisers rank performance as the most important factor (46%), followed by availability on their primary investment platform (35%), competitive fees (28%), and “the reputation of the asset manager (26%).

Advisers want solutions that deliver consistent outcomes for clients while integrating easily into their existing platforms and advice processes. Managed accounts are typically aligned to clients’ risk tolerance and investment horizon, and are most commonly used for longer-term investors. More than half of advisers use managed accounts for clients investing for 6 years or longer, with an average investment horizon of 7.6 years.