BlackRock's managed accounts constitute $6.5 billion of these assets, offering a diverse array of options including ESG, index, active, and international investments. This growth mirrors findings from the recent IMAP–Milliman census, indicating net inflows of $14.3 billion into managed accounts during the latter half of 2023, bringing the total FUM to $232.7 billion—an increase of $27.2 million over six months.
The ascent of managed accounts aligns with regulatory shifts and the departure of around 5,000 financial advisers from the industry, which have prompted a restructuring trend among practitioners. BlackRock noted the dual appeal of investment and operational efficiencies, with model portfolios driving a 160% growth in FUM between 2019 and 2024, accompanied by a 50% increase in adviser usage of these accounts.
ESG integration has rapidly gained traction, with 60% of advisers adopting these considerations into their models. BlackRock anticipates that managed accounts will increasingly serve as instruments for savings, notably for potential home buyers. The inclusion of active ETFs is expected to rise in tandem with their growing popularity among advisers.
Looking forward, BlackRock projects the continued expansion of managed account adoption as advisers increasingly delegate investment execution, allowing them to concentrate on guiding clients through retirement. While off-the-shelf separately managed accounts maintain significant appeal, there is a growing interest in bespoke models with a more active management approach as the market evolves.
