A New Pace For Managed Accounts In 2026

Financial Newswire Contributor

30 March 2026

As advisers navigate market volatility alongside growing demands for governance, efficiency and personalisation at scale, managed accounts – now used by three in five advisers – continue to play a key role in supporting investment outcomes.

Against a backdrop of volatility, CFS Managed Accounts’ appointed investment managers remain focused on long-term investment objectives and strategic asset allocations. In these environments, managed accounts can provide confidence for advised clients through ongoing monitoring, disciplined portfolio management and timely rebalancing – helping portfolios remain aligned to long-term objectives without reactive decision-making.

Growth remains, but with greater balance

The CFS Managed Accounts team believes investor behaviour will continue to reflect an appetite for equity-driven returns. While a more defensive posture has emerged as managed account designs continue to evolve and while advisers may look offshore to broaden diversification, Australian equities are expected to remain a core allocation.

Mid and small-cap exposures in the US and Europe have attracted greater attention, driven by concerns around concentration risk and the desire to diversify beyond the Magnificent Seven. Private credit has also garnered interest, particularly among high-net-worth clients.

SMAs dominate as scale becomes critical

Separately Managed Accounts (SMAs) continue to dominate flows and adoption, particularly across platform‑driven and mass-affluent markets. Their appeal lies in flexibility, transparency and cost efficiency, supported by robust investment menus spanning a wide range of asset classes, price points and generational needs.

On the other hand, Individually Managed Accounts (IMAs) and Managed Discretionary Accounts (MDAs) continue serving clients seeking bespoke solutions. While MDAs can offer deep customisation, their operational complexity and ongoing governance requirements have the potential to limit scalability for advice practices. ASIC has signalled plans to update Instrument 2016/968 later this year, following its current corporate plan review of platforms and licensees offering and using MDAs. Further regulatory guidance is expected this year.

For advisers, the message is clear: structure must align with client segment. Transparency plays a central role. The more clearly clients can see what they are invested in and how portfolios are tracking, the easier it becomes to connect investment outcomes with long‑term goals. This has reinforced the importance of technology-enabled reporting and engagement tools, along with the role of SMAs as a foundation for both scalable advice delivery and demonstrating the Best Interest Duty (BID).

Three trends to watch in 2026

Three major trends are expected to shape managed account demand and portfolio construction in 2026: intergenerational wealth transfer, retirement, and growing interest in private markets.

According to Taylor, the transfer of wealth from older to younger generations may drive a reset toward growth assets and potentially a stronger preference for ESG considerations. At the same time, the increasing number of Australians entering retirement is reshaping portfolio objectives. Advisers face pressure to deliver scalable, outcome-oriented strategies focused on income and capital preservation, while platforms continue to develop dedicated retirement solutions.

Interest in private markets is also increasing, with managed accounts emerging as an enabler of access to more complex and often hard‑to‑reach asset classes. Regulatory scrutiny – highlighted by ASIC’s recent report on private credit – reinforces the importance of robust governance and due diligence. As private markets become more mainstream, specialist managers with deep research capability and scale will play a critical role in educating and guiding clients.

The rise and rise of AI

AI is set to play an increasingly important role in how information is accessed, interpreted and communicated. As advisers use AI-powered tools to summarise disclosures, compare investment options and seek answers without navigating multiple platform documents, clarity and consistency of information become critical.

AI systems do not simply retrieve content – they interpret it. Where information is poorly structured, inconsistent or buried in dense documentation, AI-generated summaries may fail to reflect intended positioning or investment nuances. This mirrors broader trends in investor communications, where AI is becoming a key gateway to information.

From an investment perspective, this growing reliance on AI helps explain why AI-led innovation continues to drive earnings growth across the sector, reshaping business models and competitive dynamics.

What should advisers focus on now?

Across client segments, demand has remained consistent: transparency, operational efficiency and clearly articulated risk-return outcomes.

While these fundamentals continue to underpin the appeal of managed accounts as a scalable solution, advisers are operating in an increasingly complex regulatory environment. Taylor highlights a shift in platform expectations, with many acting as industry ‘gatekeepers’ by uplifting governance standards and holding advisers to higher benchmarks.

At the same time, continued growth places renewed emphasis on efficiencies of scale. Advisers must deliver cost-effective advice while meeting their duties. As digital advice tools and AI evolve, Taylor cautions against overly “cookie-cutter” approaches, warning that poor implementation could lead to unsatisfactory consumer outcomes and regulatory enforcement.

Ultimately, managed accounts are evolving beyond portfolio construction. They are becoming a framework for delivering advice at scale – balancing efficiency, personalisation and risk management – while meeting rising expectations from clients, platforms, regulators and increasingly intelligent systems interpreting information on their behalf.

Disclaimer

Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 (AIL) is the trustee of the Avanteos Superannuation Trust ABN 38 876 896 681 and issuer of CFS Edge Super and Pension. Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (CFSIL) is the Investor Directed Portfolio Service (IDPS) operator, administrator and custodian of the Avanteos Wrap Account Service and issuer of CFS Edge Investments. CFSIL is also the administrator and custodian of the Colonial First State Managed Account ARSN 167 425 649 and ARSN 618 390 051. Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 is the responsible entity for the Colonial First State Managed Account, available for investment through CFS Edge super, pension and investment products.

This article is based on current requirements and laws as at 31 March 2026. While all care has been taken in preparing the information contained in this document (using reliable and accurate sources), to the extent permitted by law, no one including AIL and/or CFSIL, nor any related parties, their employees or directors, accept responsibility for loss suffered by anyone from reliance on this information. This article may include general advice but does not consider your individual objectives, financial situation, needs or tax circumstances. You can find the Target Market Determinations (TMD) for our financial products at www.cfs.com.au/tmd, which include a description of who a financial product might suit. You should read the relevant Product Disclosure Statement (PDS), Investor Directed Portfolio Service Guide (IDPS) and and Financial Services Guide (FSG) carefully, assess whether the information is appropriate for you, and consider talking to a financial adviser before making an investment decision. The IDPS Guide and FSG can be obtained from your adviser, cfs.com.au/cfsedge or by calling us on 1300 769 619.