Managed accounts (MAs) can provide clients with tax benefits, bespoke investment solutions and investment transparency while allowing advisers to cut down on their administrative costs – freeing up time that they can spend with clients.
In the past five years, MAs funds under management (FUM) have increased by $80 billion to $111 billion, according to the Institute of Managed Account Professionals (IMAP). And in the six months to June 2021, their total FUM soared by $15.8 billion.
But despite record growth, there is one thing getting in the way of further adoption: their complexity.
That’s why this feature will explore MAs, their usage in Australia and how they are continuing to evolve in the advice landscape.
Mat Walker, chief executive of Praemium, a MA provider, says MA growth has been driven by the numerous benefits they present to investors.
“Managed accounts enable investors and their advisers to outsource the management of their investment portfolio to a professional investment manager, typically there is greater transparency of the underlying investment assets in the consolidated reporting of their investment portfolio and lower ongoing investment costs relative to other managed investments options, [such as managed funds],” Walker said.
“Advisers like enabling these benefits for their clients as it often leads to improved client outcomes and they can clearly and easily demonstrate that they are meeting...
