Gaining back time with managed accounts
Managed accounts are a hot topic, and they’re always described as a way to make an advice business more efficient. But we’ve found that not everyone understands how that works in practice.
The most valuable commodity in any advice practice is time, and we hear from many of the advisers we work with that they don’t have anywhere near enough of it.
For most advisers, this is because they have to spend a huge amount of time on administration and processing — usually a lot more time than they spend ‘face-to-face’ with clients. It really should be the other way around.
If you use managed accounts with your clients, you’re basically outsourcing the portfolio management, which means you don’t have to spend as much time on investment selection, rebalancing portfolios, corporate actions, trade execution, and countless other investment-related activities. Plus the administration burden associated with client documentation is likely to reduce. Subject, of course, to your licensees’ compliance policy and procedures.
So what would you do with extra time in your day? Take on more clients? Have more in-depth and strategic conversations with your existing clients? Spend more time on your business? All of this is possible, and that’s why it’s worth taking a closer look at managed accounts.
Colonial First State’s managed account solutions
In developing our managed accounts product suite at Colonial First State, we recognised that different licensees and advisers have their own unique business needs and requirements. That’s why, rather than developing a one-size-fits-all solution, our approach was to develop a range of managed account solutions.
Colonial First State’s managed account solutions are available across both our FirstChoice and FirstWrap platforms. On FirstChoice, licensees can have managed account portfolios set up for their super and pension clients, expanding on the multi-manager and model portfolio options already available.
On FirstWrap, advisers can invest on behalf of their clients in a range of managed account portfolios provided by a number of professional portfolio managers, and hold them alongside other investment options in a client account. Work is also underway on a tailored managed account solution, ideally suited to licensees with their own investment capability that are looking to take on the role of portfolio manager for their managed account solution.
For more information on Colonial First State’s managed account solutions or to find out more about managed accounts, visit colonialfirststate.com.au/managedaccounts.
Laird Abernethy, General Manager Distribution, Colonial First State
Adviser use only
Colonial First State Investments Limited ABN 98 002 348 352, AFS Licence 232468 (CFSIL) is the issuer of the FirstChoice range of super and pension products from the Colonial First State FirstChoice Superannuation Trust ABN 26 458 298 557. Colonial First State is a wholly owned subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124, AFS Licence 234945 (the Bank). This information has been prepared by Colonial First State Custom Solutions, which is the registered business name of Avanteos Investments Limited ABN 20 096 259 979, AFS Licence 245531 (AIL). AIL is the operator of a number of investor directed portfolio services (IDPS’), is the trustee of a number of superannuation funds, and provides custodian and/or administration services in relation to superannuation, IDPS, IDPS-Like and managed discretionary account (MDA) products. AIL is owned ultimately by Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (the Bank). The Bank and its subsidiaries do not guarantee performance of AIL or CFSIL products or the repayment of capital by AIL or CFSIL. The Trust Company (RE Services) Limited ABN 45 003 278 831, AFSL 235150, is the responsible entity of the Colonial First State Managed Account. The responsible entity is a wholly owned subsidiary of Perpetual Limited (ABN 86 000 431 827).
While all care has been taken in the preparation of this document (using sources believed to be reliable and accurate), to the maximum extent permitted by law, no person including AIL, nor any related parties, their employees or directors, accepts responsibility for any loss suffered by any person arising from reliance on this information. This document contains general information for adviser use only and is not to be handed to any investor. It does not take into account any person’s individual objectives, financial situation, needs or taxation circumstances. You should read the relevant Product Disclosure Statement (PDS) (FirstChoice and FirstWrap) or Investor Directed Portfolio Service Guide (IDPS Guide) (FirstWrap only) before making any recommendations. Clients should read the relevant PDS or IDPS Guide before making an investment decision and consider talking to a financial adviser. Clients can obtain FirstChoice PDSs from colonialfirststate.com.au or by calling 13 13 36 and FirstWrap PDSs and IDPSs from their adviser. This document cannot be used or copied in whole or part without our express written consent.
Taxation considerations are general and based on present taxation laws and may be subject to change. AIL is not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and investors should seek tax advice from a registered tax agent or a registered tax (financial) adviser if they intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.
© Avanteos Investments Limited 2018.
AUTHOR
Partner Article
Recommended for you
Hybrid securities can offer investors equity-like returns, yet with a lower level of risk. Here’s a rundown on hybrids and why they are attractive investment options.
Diversified managed funds could make an ideal addition to a managed account, as the broad toolset available to the fund manager enables them to seek outperformance and manage risk, according to Allan Gray.
The number of advisers using managed accounts has exploded in recent years, often at the expense of diversified managed funds. But diversified funds deserve a place in almost any multi-asset portfolio, held either within or alongside a managed account, according to Allan Gray.
Over the years government regulations regarding financial advice delivery has increased complexity, compliance costs and time to deliver advice. As a result, financial advisers have been forced to “orphan” their less affluent clients.
