3 in 5 Australian advisers now using managed accounts

Mike Taylor

Managing Editor and Publisher

17 March 2025

Nearly three in five financial advisers are now using managed accounts in client portfolios with the main reasons being their availability and performance, according to new research from Investment Trends sponsored by State Street Global Advisors.

The research, published today, reveals that 59% of financial advisers are using managed accounts in client portfolios, up from 56% a year earlier.

Releasing the report, SSGA and Investment Trends noted that the use of managed accounts had tripled in the space of a decade with the growth trend likely to continue in circumstances where a further 16% of advisers have expressed interest in adoption.

They said this suggested that managed account use could, potentially, reach 75% of advisers in coming years.

Speaking to Financial Newswire, SSgA’s vice-president and ETF and Model Portfolio Strategist, Sinead Schaffer pointed to the US experience as an indicator of the potential for managed account growth in Australia.

“We tend to follow the US,” she said,

The latest SSgA Investment Trends Managed Accounts Report surveyed 946 financial advisers across Australia between November last year and January, this year, which showed that demand for SMAs and IMAs had remained robust despite global economic uncertainty and inflationary pressuers.

The Report showed advisers using managed accounts allocate, on average, close to three-fourths (71%) of clients’ total assets into these accounts. Additionally, managed accounts advisers are directing a record 48% of new client inflows to managed accounts, setting a new high—up from 41% in 2024, reflecting the growing prominence of managed accounts as a primary investment structure.

“This explains why funds under management (FUM) in managed accounts have surged 23.2% in the 12 months to December 2024 to a record-breaking $232.77 billion,” the report analysis said.

Schaffer said performance is the most important factor when selecting a managed account with advisers valuing the ability to achieve full asset allocation.

“Half of the financial advisers chose performance as the most important criteria when selecting a managed account, while availability on the main investment platform has now surpassed fees as the second highest priority,” Schaffer said.

The Report showed that multi-asset class models are the most widely used, as 68% of advisers recommended the models in the past year. Additionally, the ability to achieve full asset allocation is a key reason advisers recommend managed accounts to their clients.

That said, this year advisers have reduced the number of models they recommend to clients from 18.2 in 2024 to just 12.1 this year.