$300 Billion in managed accounts: Why the next phase belongs to governance

ifa

The $300 billion milestone, according to the latest IMAP/Milliman Managed Accounts FUM Census, cements the managed accounts industry’s position as one of the fastest-growing segments of the Australian intermediary market. It reflects more than strong markets, capping a decade-long shift in how advisers deliver portfolios for greater scalability and consistency. But the more useful question is not how the industry reached $300 billion. It is where the next phase comes from, and what will separate the providers that lead it from those that do not. 

The next phase will be defined by two forces already visible in the market today: consolidation of managed accounts and a decisive rise in the importance of governance. 

From a growth story to a maturity story 

The rise of managed accounts has been one of the defining trends in Australian financial advice, and adoption has now reached a level that marks a maturing market rather than an emerging one. 61 per cent of advisers now use managed accounts, and they have moved from the margins of a practice to its centre, with 73 per cent of users treating them as their primary or core portfolio solution. That commitment is deepening, with advisers expecting to direct 68 per cent of new client inflows into managed accounts over the next three years, up from 61 per cent today. 

The rest of this article can be found at ifa.com.au.