BlackRock has reached $500 million in funds under advice for its separately-managed account (SMA) service.

The SMA business, BlackRock Customised Portfolio Service, was launched in August 2005 and now manages 4500 accounts.

The SMA product is on the approved product list of dealer groups including Professional Investment Services, Count, Financial Wisdom and Futuro.  

The firm has also promoted James Langlands to co-head of its SMA business in a bid to boost distribution. Langlands was previously a business development manager. In the job, he will work alongside Rob Dixon.

Previous co-head Scott Phillips has been promoted to head of retail and will oversee the distribution of both the SMA and investment businesses.

Growth has primarily been driven by adviser and investor demand for a low-cost portfolio solution that is simple, transparent and flexible, according to Phillips.

Phillips said BlackRock has plans to re-invest in the SMA business.

"We will be looking at investing in new technology and increasing some of the new software functions for our clients," he said.

Institute of Managed Account Providers chair Toby Potter said there will be continued adviser demand for SMAs.

In particular, the global financial crisis and disappointing performance of managed funds will mean more investors will be interested in direct securities, according to Potter.

Paragem Dealer Services recently announced it would enter the individually-managed account market, with plans to roll out a solution this year.