Managed accounts reach ‘maturity phase’ with $16.7bn inflows
Managed accounts saw net inflows of $16.7 billion in the six months to 30 June.
In its biannual FUM census, the Institute of Managed Account Professionals (IMAP), in conjunction with Milliman, found this was a 24.6 per cent increase on the same period a year ago, when net inflows stood at $10.6 billion.
The inflows meant FUM rose from $205.5 billion a year ago to $256.4 billion.
The research house collected data from 49 large and small organisations and said it observed a “healthy competitive market” with a broad range of managed account offerings, although it noted eight organisations were managing more than $10 billion each.
Commenting on the data, Potter, chair of IMAP, said: “The net inflows in the six months to 30 June 2025 were slightly higher this period, which is a strong signal that advisers are finding more clients, whose investment goals and service needs suit the appropriate use of managed accounts.
“The managed account market is now in the maturity phase.”
Looking at specific managed account types, separately managed accounts (SMAs) and managed investment schemes (MISs) were the dominant players, rising from $129 billion a year ago to $169.3 billion. Managed discretionary accounts (MDAs) rose from $52.4 million to $60.4 billion, while ‘others’ rose slightly from $24.2 billion to $26.5 billion.
Milliman practice leader, Australia, Victor Huang, said the market has continued to provide positive annual growth for managed account investors.
“The investment markets continued to show strong growth in the first half of calendar 2025 with a 6.4 per cent increase in the value of the ASX / S&P 200 Accumulation Index, giving an increased annual growth rate of 13.3 per cent for the year June 2024 to June 2025,” Huang said.
“This first half of 2025 saw markets perform well, despite volatility introduced by the tariff trade wars related to USA, and continued conflicts in Ukraine, and the Middle East. Positives have been the invigoration of Europe, UK, Australasian, and Canada trade links, stronger commodities and AI technology growth being key themes.”
In their annual financial year 2025 results in August, numerous financial services firms flagged managed accounts as being a tailwind for their future growth plans, including Income Asset Management (IAM), Generation Development Group, and Praemium.
GDG, in particular, is predicting the managed accounts market will grow at 15 per cent per annum to $474 billion by 2030, a forecast that the firm has since reaffirmed and even raised to 17 per cent per annum. To benefit from this, it acquired Evidentia earlier this year and has merged this with Lonsec Investment Solutions to create a leading managed account provider.
AUTHOR
Laura Dew
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