Managed accounts usage has increased 14% since 2019 as the role of financial planners has shifted from being an ‘investment adviser’ to a ‘wealth coach’, according to State Street Global Advisors.
A report by SSGA’s SPDR ETFs/ Investment Trends on managed accounts found over the last decade usage was up 135%.
SSGA’s head of SPDR ETF Asia Pacific distribution, Meaghan Victor, said managed accounts were attractive because they allowed planners to focus on their clients’ best interests by outsourcing aspects of their investment management that allowed them to spend more time providing high-value client services.
The report found on average, managed accounts saved planners 13 hours a week. Over time, managed accounts provided additional time saving – after two years of usage planners would have saved up to four hours per week compared to their initial year of use.
“This time saving allows financial planners to spend more time helping clients focus on their financial goals and contacting existing clients. During the current market environment, many clients are seeking additional reassurance and guidance from their financial planner and their team, being accessible and available to meet their client needs is now more important than ever,” she said.
Speaking to Money Management, Investment Trends’ chief executive, Michael Blomfield, said planners at the moment were in “hand-holding conversation mode” given the...