UNSW and Adviser Ratings land SMA research grant

According to Adviser Ratings, the grant will support a PhD research project focused on “advancing transparency, standardisation and trust in the rapidly growing separately managed accounts (SMA) segment of Australia’s wealth management sector”.

This comes after the Adviser Ratings Group launched the SMA Reporting Standard (SMARS) in March, with the stated aim of promoting “unity and clarity” to fee reporting across the sector.

The SMARS framework aims to standardise RG 97 fee reporting and terminology for SMAs. It addresses past inconsistencies in fee structures, allowing for clearer product comparisons and better-informed decisions by advisers and consumers.

The project – “Developing artificial intelligence-driven tools to maintain data standards and empirically validate investment outcomes for the managed accounts sector” – is one of two UNSW industry linked submissions chosen for funding from a pool of 177.

As Adviser Ratings highlighted, Australia is on course to becoming the second largest pension market in the world, with the managed accounts sector growing at a significant rate as part of this, with more than $250 billion invested. As this expansion continues, the need for standardisation, transparency and risk management grows, particularly with SMAs.

“SMAs represent the future of personalised, transparent investing, but the sector is currently hampered by inconsistent data formats and reporting standards,” said Angus Woods, managing director of Adviser Ratings.

“Our collaboration with UNSW through the National Industry PhD Program is a critical step towards developing AI-driven tools that bring consistency and clarity to this market. This isn’t just about compliance – this is about creating an industry infrastructure that builds trust at scale.”

The project will be embedded within UNSW’s School of Computer Science and Engineering and supported by the UNSW AI Institute.

“We’re excited to be part of a project that brings together artificial intelligence, data integrity and responsible innovation,” said Dr Sue Keay, director of the UNSW AI Institute, before highlighting some ways in which AI can help professionals rather than replace them, such as by “enhancing transparency, improving investor outcomes and strengthening the ecosystem”.

The grant will provide Adviser Ratings access to a dedicated PhD candidate, academic resources and collaboration opportunities with researchers.

“This initiative places Adviser Ratings at the forefront of shaping the managed accounts industry – not just in Australia, but globally,” Woods said.

“We’re laying the groundwork for a future where investment reporting is consistent, credible and both adviser- and investor-centric.”