Four fold increase in world managed account market
INVESTOR enthusiasm for managed accounts, which include unified managed accounts, separately managed accounts and wraps, is expected to continue as the value of assets held in such products hits more than $1.3 trillion globally.
Between 1997 and 2005, funds in managed accounts more than quadrupled, including a $500 billion leap over the past two-and-a-half years, according to a report from Cerulli Associates.
However, Cerulli analyst Jeffrey Strange, who wrote the report, told Money Management the excitement about the potential of managed accounts was hampered by “noise” in the form of new product packaging, new platforms and shifting definitions and acronyms.
“The potential of managed accounts lies in product-neutral platforms that are driven by individual client need, while being agnostic to packaging,” he said.
In the report, Cerulli recommends intermediaries work towards having all managed account programs supported by one centralised managed account group.
“The more unified the [managed account group], the more consistent the voice and offering from the home office that can be communicated to advisers and subsequently to clients,” Strange said in the report.
He also claimed adviser education tended to be overly product-oriented.
Recommended for you
Digital advice tools are on the rise, but licensees will need to ensure they still meet adviser obligations or potentially risk a class action if clients lose money from a rogue algorithm.
Shaw and Partners has merged with Sydney wealth manager Kennedy Partners Wealth, while Ord Minnett has hired a private wealth adviser from Morgan Stanley.
Australian investors are more confident than their APAC peers in reaching their financial goals and are targeting annual gains of more than 10 per cent, according to Fidelity International.
Zenith Investment Partners has lost its head of portfolio solutions Steven Tang after 17 years with the firm, the latest in a series of senior exits from the research house.
