The conversation around managed accounts in Australia is shifting from whether advisers should use them to which solution is most appropriate, and why, as the sector matures and regulatory scrutiny intensifies.
Recent data illustrates the scale of that shift. The State Street/Investment Trends 2026 Managed Accounts Report, based on a survey of more than 1,000 Australian financial advisers, found 60% of advisers now utilise managed accounts, with 73% of them using Separately Managed Accounts (SMAs) as a core portfolio allocation. The latest Managed Accounts FUM Census, published by the Institute of Managed Account Professionals (IMAP) in conjunction with Milliman, reported the Australian managed accounts market exceeded $292.9 billion in funds under management as of 31 December 2025, with SMAs continuing to represent the largest and fastest-growing segment.
Early adoption of managed accounts was largely driven by operational efficiencies, including centralised portfolio management, improved implementation consistency and time savings for advisers. As the market has matured, attention has shifted towards the governance, portfolio construction, implementation and transparency underpinning long-term investor outcomes, alongside a broader range of investment solutions spanning active and passive strategies, retirement-focused portfolios and increasingly sophisticated multi-asset approaches.
Regulatory attention has intensified in step with the sector’s growth. In an October 2025 address, ASIC Commissioner Alan Kirkland said managed accounts are playing an increasing role in Australia’s investment landscape, and confirmed that ASIC’s 2025-26 Corporate Plan has identified managed accounts as a priority area for surveillance, with particular focus on how licensees manage general obligations, identify and manage conflicts of interest, and ensure products continue to deliver appropriate client outcomes.
For advisers, this is occurring alongside an evolving advice framework in which the Best Interests Duty remains central to product selection. External research provides an important input into due diligence, but does not replace an adviser’s obligation to understand the products they recommend and satisfy themselves those recommendations remain appropriate for their clients’ objectives and circumstances.
As managed accounts have matured, so too has the nature of adviser due diligence, moving beyond questions of historical performance, asset allocation and fees towards how investment decisions are governed, how portfolios are implemented, and whether processes are sufficiently transparent to support consistent client outcomes.