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
ASIC has released the results from the latest financial adviser exam, the first to be run since changes to its structure earlier this year.
Sharing his reasoning in joining the FSC board, WT Financial managing director, Keith Cullen, believes “product and advice cannot be separated” from each other in the current environment.
The Emerge Foundation, a charity run by financial advisers and fund managers, has announced a scholarship program to help veterans transition into tertiary education.
In an open letter, Sequoia chief executive Garry Crole has hit out against shareholders “with a personal axe to grind” as he fights for his job ahead of an EGM.
