Are managed portfolios default advice architecture?

Managed portfolios are becoming the default architecture for advice in the US and United Kingdom and Australia is rapidly following suit, according to new research released by AMP Limited in its inaugural North Managed Portfolios Insight Report.

The report, released today, reflects AMP’s focus on managed portfolios as one of the growth drivers for its North Platform, with the company noting that North has just achieved its fastest half year of growth with managed portfolio assets under management surging by more than $2.8 billion.

The report analysis listed its key findings as being:

• Record Growth: Managed portfolio assets under management in Australia reached $256.24 billion at June 2025, a 24.6% year-on-year increase.
• Boutiques break through: While the top managers still command the bulk of industry assets, the report shows rapid growth from challengers, with challenger managers fast gaining traction as advisers diversify their manager line-ups to access global capability, alternatives and ESG-focused strategies at scale.
• Adviser Adoption: Managed portfolios have shifted from niche solutions to the centre of advice delivery, offering advisers better governance, streamlined compliance, and more time for client conversations. Two thirds of advisers now use managed accounts[2], yet only about one-third of advised assets are in managed portfolios, highlighting significant room for growth.
• Innovation and Customisation: The next wave of growth will be driven by customisation, technology integration and the inclusion of alternative assets, as well as private markets and sustainable investments.

AMP Limited general manager of Managed Portfolios and Investments, David Hutchison said the question was no longer whether managed portfolios will dominate the advice landscape, but how quickly innovation will reshape their form and function.

“In that context, the rapid growth of platforms like North is not just a story of institutional success — it’s a bellwether for the future direction of wealth management in Australia,” he said.

AMP chief economist, Shane Oliver said managed portfolios are acting as a mirror to broader investment trends.

“Australian investors have been increasingly reducing their home country bias. While much of this has favoured the US in recent times, this is under some consideration given its period of outperformance and uncertainties around US policies, but US dominance in AI provides a significant offset,” he said.

“In many ways, managed portfolios are a barometer for the world’s largest allocators – they reflect the same forces reshaping institutional portfolios worldwide.”

Institute of Managed Accounts Professionals (IMAP) chair, Toby Potter said the scale of inflows showed that advisers see managed portfolios as structural to their service models.

“The international experience is clear. Once advisers adopt managed portfolio models, they rarely go back,” he said.