What Australia’s financial advisers tell us about the future of managed accounts

Managed accounts continue to reshape the way financial advice is delivered in Australia. What began as a specialist portfolio implementation tool has evolved into a core operating framework for many advice practices—supporting better client outcomes, stronger governance and more scalable business models.

The State Street/Investment Trends 2026 Managed Accounts Report provides one of the most comprehensive views of this evolution. Based on insights from over a thousand Australian financial advisers, this article highlights what the latest research reveals about how managed accounts are being used today, what is driving adoption, and how adviser expectations are changing as the market matures.

Managed accounts have moved decisively from growth into acceleration. Adviser use has reached a record high, with more than 60% of advisers now actively using managed accounts, and a further cohort considering adoption. Importantly, growth is no longer driven solely by new users entering the market. Existing users are allocating materially more of their clients’ portfolios to managed accounts, creating a powerful momentum effect as these solutions become increasingly embedded in advice delivery.

Conviction among advisers continues to deepen. Nearly three quarters of advisers who use managed accounts now position them as the core portfolio solution, rather than a satellite allocation, with the majority of new client flows being directed into managed account structures. This shift reflects confidence in their ability to deliver consistent outcomes, aligned asset allocations and disciplined portfolio management across market cycles.

The result has been rapid growth in assets. Managed account funds under management have reached approximately $292 billion by the end of 20251, with the market expected to grow to around $400 billion by the end of 2027. Taken together, these trends highlight a clear structural change: managed accounts are no longer an overlay to advice—they are increasingly the central framework for portfolio construction and implementation.

One of the most striking findings from the report is the behavioural impact of managed accounts on investors. Advisers consistently report that clients invested through managed accounts are more confident, more disciplined, and less likely to make impulsive portfolio changes during periods of market volatility, compared with those using traditional portfolio structures.

In an environment marked by geopolitical uncertainty and persistent inflation pressures, this behavioural advantage has become an increasingly important part of the value proposition—helping advisers maintain investment discipline, reinforce trust in the advice process, and keep clients focused on long‑term objectives rather than short‑term market noise.

Managed accounts are most commonly used for long‑term investors, with advisers typically recommending them to clients with extended investment horizons. The research shows that more than half of advisers use managed accounts for clients investing for six years or longer, with the average intended investment horizon around 7½ years—effectively a full market cycle. This supports their positioning as a strategic, all‑weather portfolio solution, rather than a tactical allocation tool.

This long‑term focus is reflected in portfolio construction. Around 73% of advisers now use managed accounts as the core portfolio solution, and in 2026 the average proportion of core investments allocated to managed accounts increased to approximately 66%, with a growing share of advisers allocating 70% or more of the core portfolio to these structures. Strategic asset allocation remains the dominant foundation, underpinned by disciplined rebalancing, although tactical and dynamic strategies continue to gain ground as advisers seek greater flexibility within a robust, governance‑led framework.

How advisers are implementing managed accounts at scale

Implementation choices further highlight the maturing role of managed accounts in advice delivery. Separately Managed Accounts (SMAs) remain the dominant structure, with close to nine in ten advisers implementing managed accounts via SMAs, reflecting their scalability, platform integration and operational simplicity. At the same time, use of Managed Discretionary Accounts (MDAs) is increasing, particularly among larger, more profitable practices with more developed governance frameworks, indicating selective uptake rather than a broad shift away from SMAs. In terms of model design, off‑the‑shelf solutions continue to dominate, with around two‑thirds of advisers relying on pre‑built models, often with minor customisation, to support consistency and ease of oversight.

Turning insight into action

As markets become more complex and client needs more diverse, the focus shifts from simply generating ideas to how portfolios are implemented and managed over time. A disciplined, repeatable approach to portfolio construction—combined with professional oversight—can help advisers deliver greater consistency while reducing operational burden.

State Street offers a range of model portfolios, drawing on our global investment expertise and implemented through a managed account structure that State Street manages, helping advisers translate investment thinking into outcomes across different client objectives.

To learn more about State Street’s model portfolios and how they can support your practice and your clients, speak with your State Street representative or explore our solution.