The shift to managed accounts among the financial planners in Australia has accelerated with 70% of planners currently using or intending to use managed accounts, compared to 44% in 2012, according to the joint report by Investment Trends and State Street Global Advisors (SSGA).

The study found that one of the key benefits for a growing number of planners drawn to managed accounts was freeing up their time which allowed them to focus on client relationships and reduce administration time.

“We have seen a very steady growth in managed accounts and we have seen the benefits of managed accounts to both planners and advisers and the reason why planners and clients talk about the these benefits being the transparency, the efficiency and the freeing up their time,” Investment Trends chief executive, Sarah Brennan, said.

“The COVID-19 period allowed that to be demonstrated and the fact that we saw an increase in allocation of funds, which increased quite sharply, is probably a confirmation that these benefits played out in the very volatile and obviously very difficult period.”

Prior to COVID-19, on average, planners allocated around 12% of new client inflows into managed accounts, however one year on from the beginning of the global pandemic planners said they were allocating 17% of new client inflows into managed accounts.

According to the market forecast, this figure was expected to grow even further with planners allocating...