Advisers’ interest in SMAs set to grow: Lonsec
Specialist financial services companies and larger banks are looking to grow their separate managed account (SMA) businesses over the next two years, Lonsec said.
Lonsec conducted new research into SMA platforms as it saw an increasing interest from investors.
"In essence, usage of SMAs will likely grow thanks to both greater demand from advisory groups and other investors and to new and competitive solutions that are delivered by banks and other companies that are strategically committed to SMAs," Lonsec's general manager Michael Elsworth said.
Lonsec also found SMA operators work differently in communicating with model portfolio managers, advisers and investors.
"This new research defines the language and key concepts underlying SMAs in Australia and we expect the research to grow and become a sector in its own right over coming years," Elsworth said.
Lonsec gave ‘approved' ratings to each of the five SMA platforms it reviewed, which make up over $2 billion in assets under management and over half of the total SMA market (defined as funds tracking model portfolio).
Recommended for you
With the highest number of candidates in a year sitting the latest financial advice exam, a surge of new entrants are expected in the coming weeks, according to Wealth Data.
AMP has launched a range of five diversified index managed portfolios on its North investment platform, targeting a younger client demographic.
An NSW adviser, who advised over 120 clients after falsifying her financial advice exam results, has been permanently banned by ASIC.
ASIC has released the results from the latest financial adviser exam, the first to be run since changes to its structure earlier this year.
