Report confirms adviser adoption of managed accounts

An ever increasing number of financial advisers are implementing managed accounts in their practices, citing cost effectiveness, operational efficiency, transparency and improved financial outcomes for clients, as key reasons for the move.

These were some of the key findings coming from the 2018 NAB/Investment Trends Managed Accounts Report, which is based on a survey of 841 financial advisers. The report found that over the last 12 months, the proportion of advisers who recommend managed accounts or intend to use these solutions increased 18 per cent – growing from 46 per cent to 64 per cent.

“The adoption of managed accounts by financial advisers has continued its steady rise over the last year, with 30 per cent of practitioners now using these solutions for client investments,” said Investment Trends’ Research Director, Recep Peker.

“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.”

Client benefits

A significant finding identified in the report is that advisers are continuing to see the advantages of using managed accounts for their clients.

Among advisers who recommend managed accounts, 75 per cent agreed that as a result of using these solutions, clients outcomes had improved, and 59 per cent said their clients had become more engaged.

The report found that across the range of benefits, users believed their clients most valued:

  • transparency (64%);
  • diversification (59%);
  • access to listed investments (49%);
  • access to professional managers (49%); and
  • cost effectiveness (47%).

Rapid adoption

Another key research finding was the rapid adoption rate of managed accounts by advisers.

Among current users, on average, managed accounts already comprise 33 per cent of their total FUA. These advisers expect their usage to increase to 51 per cent in three years’ time.

Interestingly, the growth of managed accounts has taken off most rapidly with younger advisers (18-34 year olds), with 37 per cent of them actively using managed accounts. This age group is followed closely by those aged 35-44 years, with 35 per cent of them using managed accounts.

Of the advisers recommending or intending to recommend managed accounts, 50 per cent say these solutions help free up their time, while 45 per cent say it is the most effective way of implementing model portfolios.

Time savings

The report also highlighted the efficiency gains in administration by using managed accounts. The average managed account user estimated a time savings of 12.4 hours per week on portfolio management tasks.

The main time savings for advisers who use managed accounts were:



“We find that because advisers can save time 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,” said Geoff Rogers, General Manager, NAB Wealth Distribution.

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