The Australian managed account market has experienced substantial growth, driven by a shift towards sophisticated portfolio architecture and the increasing adoption of exchange-traded funds (ETFs). According to the Institute of Management Accountants, managed accounts in Australia surged to $232.8 billion in 2024, marking a 23.2 per cent year-on-year increase. This growth was fueled by strong market performance and $14.4 billion of net inflows in the second half of the year alone. Separately Managed Accounts (SMAs) now constitute 64 per cent of all managed account assets, with growth concentrated among eight firms managing over $10 billion each.
The rise of managed accounts represents a structural reengineering of portfolios, offering financial advisers a scalable framework for delivering advice with institutional-grade portfolio governance. ETFs now comprise 19 per cent of managed account holdings, up from 17 per cent just six months earlier, signalling a move towards liquid, transparent, and cost-effective exposures. This trend is driven by both platform design and investor demand, reflecting a preference for efficient and accessible investment options. VanEck Australia manages its Asia-Pacific division. VanEck provides a diverse range of investment solutions, including exchange-traded funds (ETFs), actively managed funds and managed account strategies.
While the integration of alternative investments like private credit within managed account frameworks is gaining traction, scalability remains a challenge across the retail advice ecosystem. Regulatory frameworks, product structures, and governance protocols still pose barriers. The lack of liquidity in private markets can create mismatch risk, particularly during sharp market drawdowns. However, the industry is moving towards a convergence where institutional governance meets the accessibility demands of modern retail investors.
Financial advisers who embrace institutional disciplines, evidence-based models, and robust oversight will lead the next chapter in wealth management. Managed accounts are rapidly becoming the default in a maturing industry, driven by the growth and innovation of the ETF ecosystem. The focus is shifting from product proliferation to the quality of decision-making and the integrity of portfolio design, enabling precise and purposeful adaptation to changing market conditions.
