Growth and Efficiency of Managed Accounts

Managed accounts have experienced significant growth, with funds under management nearing $200 billion, highlighting their rising popularity among financial advisors. This growth is largely attributed to the efficiency they offer, allowing advisors to provide consistent performance outcomes for their clients, thereby meeting ethical obligations to treat clients equally. Additionally, the technological advancements in managed accounts have matured, enabling better implementation, trading, and a broader range of asset types within these accounts. As a result, more advisors are adopting managed accounts, transitioning from just 16% in 2012 to 56% currently.