In the last year alone, interest in using managed accounts increased sharply at the expense of direct equities and managed funds. We believe this growth is set to continue, with advisers expecting a share of new client inflows to managed accounts to double in the next three years.
Managed accounts have been around for close to two decades, so why the sudden increase in popularity?
What’s clear is that the recent uptick in interest is attributable to not only the myriad of benefits managed accounts offer but also the direction that the industry is moving towards – one of further efficiency, transparency, trust and professionalism.
Today, more advisers and their respective firms are looking for products and services that serve to create practice and compliance efficiencies, as well as to enhance their value proposition and affirm their role as strategic financial advisers, responsible for managing their clients’ financial affairs and helping them achieve their objectives.
With drivers like this, managed accounts continue to gain momentum as a suitable option.
It’s worth highlighting some of the key benefits to understand just how powerful managed accounts can be, particularly when used to their full potential.
Transparency and control
The structure of managed accounts serves to provide optimal transparency and control for advisers and their clients. Unlike managed funds, clients maintain direct ownership of their...