Managed accounts advisers say they save 15.7 hours on average on a typical work week, up from 13 hours two years ago as proficiency in advice practices levels rise, according to research.
The latest SPDR ETFs/ Investment Trends Managed Accounts Report, which surveyed 660 Australian-based financial advisers between December 2021 and January 2022, also showed more than half of financial advisers (53%) were using managed accounts, up from just 16% a decade ago.
State Street Global Advisors head of SPDR ETFs Australia and model portfolios for Europe, the Middle East, Africa and Asia-Pacific, Kathleen Gallagher, told Money Management outsourcing was key to free up time and helped advice firms meet their mounting compliance burden.
“If you look at it over a year, that’s 100 days they get extra to engage with their client base and strengthen their overall strategy. At the same time, it’s not just about client retention, it’s also about growing their business,” Gallagher said.
“Advisers are telling us they like to use managed accounts because they provide access to institutional-grade investment management, efficiencies of scale, and more scope to focus on educating their clients and meeting client goals.”
The report showed advisers who already used managed accounts were recommending them for 60% of their clients, up from 44% in 2021. Prior to COVID-19, advisers were recommending managed accounts to just one third of...