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More advisers embracing managed accounts

With the use of managed accounts a popular discussion topic within the industry so far this year, the latest research from Investment Trends has suggested that they are worth the hype for advisers both in terms of value for clients and efficiency.

The NAB/Investment Trends Managed Accounts Report, which surveyed 841 advisers, found that the proportion of advisers recommending managed accounts, or intending to, has jumped from 46 per cent to 64 per cent over the last year.

Seventy-five per cent of the advisers already utilising managed accounts said that they had improved their clients’ outcomes, with 59 per cent agreeing that their clients had become more engaged.

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The benefits of managed accounts to clients included transparency, diversification, cost effectiveness, tax effectiveness, and customisation.

Investment Trends research director, Recep Peker, said that the benefits evolved with client type.

“For example, with lower balance clients, they are more likely to be valued for giving access to listed investments, while tax effectiveness plays a bigger role the higher balance end of the scale.”

For advisers already using managed accounts, the solution comprised on average 33 per cent of their funds under administration, which they expected to grow to 51 per cent in three years’ time.

Advisers also reported that the use of managed accounts freed up much-needed time, averaging savings of 12.4 hours per week.

“We find that because advisers can save times on things like administration, they have more time to spend on higher value add tasks like deepening the client relationship and expanding the provision of advice,” general manager, NAB Wealth Distribution, Geoff Rogers said.

Finally, the Report found that managed accounts growth took off fastest for younger advisers.

Thirty-seven per cent of advisers aged 18-34 actively used managed accounts, with 35 per cent of those in the 35-44 bracket using the structures.

Money Management is currently running a survey to determine the true drivers and winners of the managed accounts trend. Complete it here to be in the running for a bottle of Penfolds Grange Hermitage.




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