The size of the managed account industry, which includes the growing unified managed accounts sector, has doubled over the last four years and reached $1.5 trillion in assets this year, Cerulli Associates has found. Managed accounts, specifically UMAs, allow flexibility for high-net-worth investors by pooling assets into one vehicle and allowing advisors to spend more time with clients.

Despite managed account growth, 60% of firms interviewed for the study said their advisors have little understanding of UMAs in general, said Jeff Strange, senior analyst with Boston-based Cerulli. Big mutual fund firms may also be initially wary of adopting managed accounts, but in general firms are becoming more comfortable with the idea, he added. The report notes that support from a firm's upper management is critical for managed accounts to continue to gain momentum.

The company will likely release a report next year monitoring the impact of managed accounts and the growing role of overlay management, Strange said.