It seems as though managed accounts have been gaining more and more attention in recent years, and rightly so: this type of investment solution can offer a great combination of flexibility, transparency and convenience that benefits both investors and financial advisers, hence their growing popularity.
But not all managed accounts are created equal. Particularly for advisers considering which managed accounts might be right for their clients, it’s important to understand the key ingredients for a successful recipe when it comes to creating a managed account solution. Getting that recipe right can make a genuine difference to an investor finding success in meeting their financial goals.
Despite their growing popularity over the last few years, managed accounts have been around since the 1970s, having been developed to accommodate specific (and often tailored) client demands that could not be met by a pooled managed fund. Whilst managed accounts marked their first entry into the Australian market almost two decades ago, hefty investment minimums meant that these structures were typically only available to wealthier investors for many years, leading to relatively modest growth in their broader adoption.
However, recent advancements in digital technology have given rise to the modern managed account, now more accessible, scalable and to be able to be offered at lower minimums and relatively lower cost to investors. These more...