COVID-19 accelerates managed accounts take up
Managed account recommendations from financial advisers have doubled to 44% over the last five years thanks to the product’s ability to alleviate compliance burdens, according to Investment Trends.
The research house’s latest managed accounts report found that a further 26% of advisers were thinking of recommending managed accounts, and that the COVID-19 pandemic had accelerated adoption.
Investment Trends’ head of research, Irene Guiamatsia, said: “Compliance is the top challenge faced by financial advisers in the day-to-day running of their business, with direct implications for profit margins. The ability of managed accounts to alleviate these issues has certainly contributed to their rising adoption”.
The survey of 905 financial planners at the start of 2021 also found that 91% of respondents rated managed accounts as ‘good’ or ‘very good’, ahead of managed fund portfolios at 80% and direct equities at 65%.
Respondents also rated managed accounts as ‘good’ or ‘very good’ for its transaction execution speed/quality (88%), strengthening their value proposition (83%) and help in achieving better client outcomes (83%) during this difficult (COVID-19) period.
“The positive impact of managed accounts on advisers and their clients during COVID-19 is possibly the most powerful testament to the role they can play as a backbone for advice businesses big and small,” Guiamatsia said.
Recommended for you
Financial advisers are reminded to ensure their CPD is up to date with the Financial Services and Credit Panel making its second determination in a week after an adviser failed to meet the requirements.
AWAG has entered a strategic joint venture relationship with Singapore-based financial services firm PhillipCapital, expanding its product and services distribution reach.
Investment manager Drummond Capital Partners has announced a series of appointments to expand its distribution reach with advisers nationwide.
An adviser has received a written reprimand from the Financial Services and Credit Panel after failing to meet his CPD requirements, the panel’s first action since June.
