North managed accounts see inflows boom amid efficiency benefits

As managed accounts grow on the back of advisers’ favour, AMP said the vehicles have become a “foundational element of financial advice”, delivering key efficiency benefits.

Assets under management in managed accounts hit $256.2 billion in Australia as of June 2025, while the vehicles saw net inflows of $16.7 billion over the six-month period, according to the Institute of Managed Account Professionals (IMAP) census.

With this increase, AMP’s North Managed Portfolios Insights report found managed accounts now make up around a quarter of all platform assets in Australia, almost doubling over the last five years.

On North, for example, assets under management (AUM) in managed accounts increased by more than $2.7 billion in the first half of 2025 to now sit at $21.8 billion. This was the fastest period of six-month growth, it said, marking a 37 per cent increase over the previous year.

In March, the platform grew its managed account menu with the addition of Innova Asset Management, AZ Sestante, and Watershed Funds Management to its investment menu. It also extended its partnership with ETF provider Betashares to create a geared retirement series to raise exposure to defensive assets and income. This was followed by the addition of managed accounts from BondAdviser, MST, and Elston in July.

As to what is driving this growth, David Hutchison, general manager of managed portfolios and investments at AMP, said managed accounts deliver greater efficiency and confidence, allowing advisers to “scale without compromising trust”. 

Managed accounts, the report added, also offer advisers better governance, streamlined compliance, better client portfolios, and time-saving efficiency, further driving favour.

Citing IMAP research, the report said that while two in three advisers are using managed portfolios, only around one-third (25–30 per cent) of advised assets are in managed portfolios.

“This gap highlights the significant headroom for growth as more advisers deepen their engagement and shift a greater share of client assets into these structures,” Hutchison said.

“In a climate of economic uncertainty and growing regulatory scrutiny, advisers are also leaning into the institutional-grade governance and risk management frameworks that managed portfolios provide. This shift is not just about efficiency – it’s about elevating the quality and consistency of advice, and generating more consistent outcomes in investors’ portfolios.”

Hutchison also noted a key shift in the industry’s perception of managed accounts, transitioning from a niche efficiency play to become the “centre of how advice is delivered in Australia”.

Toby Potter, IMAP chair, added: “This growth is not about platforms adding products for the sake of it. It’s about adviser adoption. The scale of inflows shows that advisers see managed portfolios as structural to their service models – that’s why adoption continues to climb.”

Looking to future opportunities, the report noted growing interest in integrating alternative assets, private markets, and sustainable investments into managed accounts, offering greater diversification, as well as an efficient and compliant way to access these asset classes at scale.

For wholesale investors specifically, they are demanding greater customisation, transparency and a broader range of asset classes. Technology is also playing a role in the wholesale space with advanced reporting, real-time analytics, and enhanced risk management frameworks on display.