Managed portfolios now account for 30 per cent of total advised FUA, up from just 16 per cent in 2021, but only some sectors will be winners from this boom.
According to the North Managed Portfolio insights report for September, it identified four winners and four losers.
Source: North, September 2026
Winners
Existing managed account operators who have been able to scale their businesses have benefited from this rise in usage, with the report identifying that five providers already handle more than $20 billion in managed accounts between them.
North also argues that with managed accounts, advisers can use the investment expertise, scale and resources of a large professional investment manager to build and manage portfolios. All while the adviser still handles the client relationship and remains the main point of contact, even if an external manager is running the investments.
Those managed accounts built on strong governance, and tech builders connecting advisers, were also among the winners.
North’s own managed portfolios reached $28.3 billion in funds under management at the end of FY26. This represents a 31 per cent increase from the year prior, with North adding 63 new portfolios, and four new portfolio managers over the past 6 months.
AI and retirement income thematics were proving popular among advisers according to NMG.
Industry experts also point that managed accounts can be a boost for income and retirement. Alex Berlee, director of AGS Financial Group said they see momentum in the space, increasing focus on the product.
“In terms of retirement income, we’ve implemented specific retirement SMAs to provide more stable, income-focused portfolios.”
Losers
Looking at stakeholders that have lagged or may continue lagging, North identified the ‘me-too’ providers, those late comers who rush into providing the investment solution without strong governance and genuine investment expertise.
Further, North’s report points out under-resourced practices building their portfolios in-house and legacy providers, used to previously established practices, and less adaptable to change.
Overall, North warns of the downside for fund managers and product manufacturers who choose to stay outside the managed portfolio ecosystem and lose out on potential market share.
Lessons and outlook
North, which manages portfolios, recommends following this model of including managed portfolios as part of an operating model, rather than just as a product.
It says firms that have done so report greater capacity to take on new clients.
The report also finds that Australia tends to follow trends already established in the US and the UK, where managed portfolios grew stronger earlier.
Looking ahead, the report identifies customisation as being “the single biggest driver” of the next phase of managed portfolios.
Aequitas Investment Partners chief executive officer Nino Ramunno noted there has been a growing demand for portfolio personalisation and outsourced investment expertise.
“Practices want solutions that reflect their brand and investment beliefs while taking advantage of institutional-quality governance and portfolio management,” Ramunno said.
Andrew Yap, head of portfolio solutions at Zenith Investment Partners, added managedaccounts support advisers’ processes in a changing advisory landscape.
“With fewer advisers and growing client demand, managed portfolios provide a clear pathway to efficiency; automating trading, rebalancing and reporting, and freeing up adviser time for client engagement.” Yap said.