Managed accounts have reached a growth milestone, now making up 29% of the investment market in Australia.
Managed accounts funds under administration grew by 17% to $51 billion in the 12 months to March, according to Rainmaker data.
Platform funds under administration in trusts, wraps and selected managed accounts platforms increased 3% over the period - reaching $699 billion.
That annual lift in FUA amounted to $18 billion.
Financial adviser FUA at the end of March was $934 billion, up 1.3% in the 12 month period. According to Rainmaker, this implies that about one quarter of adviser FUA may be considered off-platform.
The number of registered advisers fell 3% during the March quarter after growing by 12% year on year.
The 3% dip is likely a reflection of advisers exiting the industry after the FASEA deadline at the end of 2018, Rainmaker said.
Rainmaker noted that the fall in registered advisers should be viewed in the context of the large surge in the December 2018 quarter as advisers rushed to get ahead of the FASEA deadline.
Non-aligned advisers are now well in the majority with 58% using non-institutionally owned licensees.
The five largest groups associated with non-institutionally owned licensees at the end of March represented 1860 advisers.
Those groups are Synchron, Merit Wealth, Interprac, Capstone, and Shaw And Partners Limited.
The number of advisers in non-institutional AFSL groups is growing almost three times faster than the advisers using institutionally-owned licensees.
The average FUA per adviser has fallen from $40 million to $35 million in the last year.
AMP Financial Planning, IOOF Group, Commonwealth Financial Planning, NAB and SMSF Advisers Network are the five largest advice licensees.
IOOF is the fastest growing group among the big six - increasing its adviser footprint by 14% in the year to March, reflecting its ANZ acquisition.