Managed accounts FUM cracks $250bn, inflows grow

In its biannual FUM census in conjunction with Milliman, IMAP found that funds under management in managed accounts reached $256.24 billion as at 30 June 2025, representing a 24.6 per cent increase over the last 12 months, up from $205.5 billion.

Managed accounts also say net inflows of $16.79 billion over the six-month period, compared with $10.6 billion in the first half of 2024.

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.

“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,” said IMAP chair Toby Potter.

“The managed account market is now in the maturity phase.”

Separately managed accounts (SMAs) remained at the head of the pack, increasing its market share slightly to 66 per cent, while managed discretionary accounts (MDAs) were steady at 23.5 per cent of FUM.

According to Victor Huang, Milliman practice leader, Australia, 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.”

Also on the managed account front, Colonial First State (CFS) has reported it now has more than $20 billion invested in CFS managed accounts.

The firm said this sum had been boosted by demand from advisers, licensees, and portfolio managers for the platform due to its reduced investment fees and discounted platform administration fees.

“Surpassing $20 billion invested into CFS Managed Accounts reflects the benefits financial advisers are realising from our significant investment in managed accounts infrastructure, expertise, and broad menu options,” said Frances Taylor, executive director of managed accounts at CFS.

“Our ambitious roadmap is focused on providing advisers with managed account solutions that provide them with efficiency, transparency and enable them to deliver better outcomes for their clients.”