Advisers are continuing to see the advantages and benefits of managed accounts for their clients, including those advisers with SMSF clients, new research has found.
The “2018 National Australia Bank/Investment Trends Managed Accounts Report” revealed in the past 12 months, the proportion of advisers who recommended managed accounts or intended to use these solutions increased from 46 per cent to 64 per cent.
Furthermore, 46 per cent of managed account users agreed these solutions are “more appropriate” to SMSF clients than managed funds or individual direct shares.
The report asked planners specifically about the benefits of managed accounts. Those who regard managed accounts as appropriate for SMSFs cited a range of client benefits, notably enabling greater focus on client goals, regular commentary from the portfolio manager, tax effectiveness and a reduced need to obtain their authority.
Among current users, managed accounts comprised on average 33 per cent of their total funds under administration, the report said.
These advisers expect their use to increase to 51 per cent in three years’ time, highlighting that managed accountants are here to stay.
The research also found the average managed account user estimates they save 12.4 hours a week on portfolio management tasks, leaving advisers more time for higher value-add tasks such as deepening the client relationship and expanding the provision of advice.
“Managed accounts adoption appears set to continue among planners, including for SMSF clients,” Investment Trends research director Recep Peker told selfmanagedsuper.
“Traditionally, planners successful in servicing the SMSF market were more likely to be involved in direct shares advice.
“By reducing the investment selection, admin and compliance burden, managed accounts are enabling these planners and many more to effectively service SMSF clients.
“Overall, about half who recommend managed accounts believe these solutions are more suitable for SMSF clients than just managed funds or direct shares.”
The report was based on a survey of 841 financial advisers.
