Q: What is the most important challenge confronting financial planners when discussing managed accounts with their clients?
A: Being able to deliver the same level of comparability that they can provide with respect to managed funds.
Managed accounts in their various guises have been confirmed as the fastest-growing segment of the financial services industry and something which has helped drive the success of platform providers such as netwealth and HUB24.
The recent 2018 NAB/Investment Trends Managed Accounts Report, based on a survey of 841 financial advisers, underlined the level of interest in managed accounts, revealing that in the 12 months to May, the proportion of financial advisers who recommended managed accounts or intended to use managed accounts rose from 46 per cent to 64 per cent.
Commenting on the research findings, Investments Trends research director, Recep Peker said the adoption of managed accounts by financial planners had continued its steady rise over the last year, with 30 per cent now using these solutions for client investments.
“The 2018 results reveal a marked surge in interest in using managed accounts, with advisers recognising considerable benefits for clients, as well as the efficiency benefits in implementing advice recommendations,” he said.
What the Investment Trends research did not show, however, was the reality that managed accounts are not as easily...