Investment
Developing efficiencies via managed accounts
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Financial advisers' use of managed accounts continues to grow from strength to strength.

The perceived suitability of managed accounts continues to broaden, with more advisers saying they see these solutions to be appropriate for both their high-net-worth and lower balance clients.

Those who recommend managed accounts experience tangible benefits of doing so:

  • time saving of 14.4 hours per week, on average, in administration and compliance work
  • higher levels of FUA and a larger client base, which translates ti additional revenue of $45,000 pa in ongoing client fees
  • extra 4.8 hours per week freed up and devoted to long-term revenue enhancing activities.
Advisers increasingly see managed accounts as a whole-of-portfolio solution.  The continued growth in adoption of managed accounts will be heavily influenced by non-users realising the benefits of these solutions to both their clients and their practice.

Introduction

Not only are advisers shedding both active and passive relationships (resulting in a decline in average funds under advice per adviser), fewer are also reporting a year-on-year growth in practice profitability.  

The challenging business climate is pushing many advisers to evolve the way they run their planning practice, notably by adopting a more client-centric approach.  To grow practice profitability, financial advisers recognise the need to service their existing clients more effectively and expand the pool of clients they serve.

 

 

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