Managed accounts improve advice says CFS
Managed accounts are driving better client engagement, increasing the number of touchpoints throughout the year and improving the delivering of financial advice, according to Colonial First State’s Managed Accounts: Building your future business whitepaper.
The analysis of managed accounts, which was conducted by Business Health for CFS, found, among other things, that 87 per cent of managed accounts users surveyed reported reduced administration within their business.
As well, 73 per cent benefited from improved client engagement, and 73 per cent reported improved client investment outcomes.
Seventy per cent benefited from improved risk control of client portfolios, and advisers using managed accounts were spending around 23 per cent more time in client appointments each week.
Peter Chun, general manager, distribution, for CFS, said the white paper took what was anecdotally known and provided insights and clear data into how managed accounts were supporting the evolution of advice practices.
“The whitepaper shows that advisers who use managed accounts are reporting reduced manual administration, more regular communication with their clients, and improved risk controls in managing client portfolios,” he said.
Business Health’s Terry Bell said the key benefit was in improved client engagement, whether it be through face to face meetings or communication touch points, which actually resulted in higher levels of client retention – something Investment Trends has pointed to in the past as a key issue within financial planning businesses.
“It’s also clear from the research that these benefits accelerate over time as managed accounts are embedded into an advice practice,” added Bell.
Recommended for you
Sharing his reasoning in joining the FSC board, WT Financial chief executive, 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.
The JAWG has announced it is in talks with Treasury around five “core principles” to strengthen the education standards for new entrants to the financial advice space.