As the growth rate of managed accounts continues, it will provide an accessible option for advisers who need to achieve scale, according to abrdn.
Con Koromilas, abrdn head of distribution, said: “For advisers that maybe don’t have the scale, don’t have the need for a bespoke solution but they’re looking for the type of capability that we’re focusing on, then they ability to access that very easily”.
Managed accounts had surpassed $100 billion for the first time, according to the Institute of Managed Account Professionals (IMAP) managed account census, which expected it to reach $200 billion in the next three years.
IMAP chair, Toby Potter, said the last three years had shown an accumulative average growth rate of over 20%, and Koromilas said he expected that rate of growth to continue.
“If you look out over the next five years, managed accounts are probably going represent roughly 50% of those platform assets, from $100 billion to $500 billion of the assets that sit on platforms,” Koromilas said.
“That’s a huge transition of terms of where of advisers business is going to sit in the technology they’re going to use across all the different platforms.”
A joint report by Investment Trends and State Street Global Advisors in April...