Managed portfolios are rapidly becoming ‘the default operating system’ for advice businesses today
David Hutchison
Managed portfolios have evolved from an efficiency tool into the default operating system for advice businesses today, with advisers increasingly adopting them to improve governance, scale their businesses and deliver more consistent client outcomes, according to North’s latest Managed Portfolios Insights Report.
The report finds Australia is increasingly following trends already established in the United States and United Kingdom, where managed portfolios have become the backbone of advice delivery.
In a sign of the growing maturity of Australia’s wealth market, managed portfolios now account for 30% of total advised FUA, up from just 16% in 2021, according to NMG[1].
It reflects a broader shift across the advice profession, where managed portfolios are increasingly being viewed not simply as investment products but as the core infrastructure that enables advisers to serve more clients, because it delivers better client outcomes with improved efficiency and stronger investment governance.
North reaches new $28 billion milestone
The report highlights North’s managed portfolios surpassed $28.3 billion in funds under management, as at 30 June 2026. That marks an increase of over 31%, up from $21.5 billion a year earlier, with AI and retirement income thematics proving popular among advisers.
This momentum was driven by several exciting new additions to the platform, as North added 63 new portfolios, 18 new series and four new portfolio managers over the past 6 months.
The report also demonstrates how advisers are putting managed portfolios at the centre of their operating models. Leading providers are now combining scalable portfolio management with client segmentation, tailored solutions, advice technology and engagement tools to deliver a vastly enhanced advice proposition and better client experience.
Focus on retirement income and greater personalisation
Alex Berlee, Director of AGS Financial Group, said managed portfolios had become an important part of delivering better outcomes for clients while helping advisers manage growing business demands.
“We’re big believers in the value of SMAs for both clients and the practice and have had an excellent take-up so far. In terms of retirement income, we’ve implemented specific retirement SMAs to provide more stable, income-focused portfolios,” Berlee said.
“These differ from our accumulation client SMAs in two ways. Firstly, they’re core income focused, to help reduce volatility for retired clients. Secondly, we separate out the growth and defensive assets into two specific SMAs in line with the bucketing approach to help avoid drawdown from volatile growth assets.”
Aequitas Investment Partners chief executive officer Nino Ramunno noted there has been growing demand for bespoke managed accounts, greater portfolio personalisation and outsourced investment expertise.
“Practices want solutions that reflect their brand and investment beliefs while taking advantage of institutional-quality governance and portfolio management,” Ramunno said.
Andrew Yap, Head of Portfolio Solutions, Zenith Investment Partners said managed portfolios have grown because they fundamentally transform how advice practices scale and deliver portfolio management.
“With fewer advisers and growing client demand, managed portfolios provide a clear pathway to efficiency; automating trading, rebalancing and reporting, and freeing up adviser time for client engagement. They also enhance practice attractiveness in a market rich with M&A activity,” Yap said.
David Hutchison, General Manager, Managed Portfolios and Investments at AMP, said managed portfolios have become central to how advice businesses operate and grow.
“Managed portfolios have become a strategic operating model for many advice practices today. They deliver better client outcomes via better governance, streamlined and repeatable client experiences and they also provide practices with a scalable solution capable of delivering meaningful outcomes for more Australians.”
“The defining shift ahead isn’t growth in funds under management. It’s the better investor outcomes (beyond just investment returns) and what practices do with the capacity managed portfolios release. Firms that treat managed portfolios as core infrastructure rather than an investment product are already reporting more consistent client experiences and greater capacity to take on new clients.”
“The next phase of growth will be driven by technology, customisation and strong
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