Adviser education on managed accounts lacking: Survey

According to a collaborative report between State Street Global Advisors and Investment Trends, together with the 35 per cent of participants who recommended managed accounts – up from 30 percent in 2018 – 31 per cent of planners intend to introduce managed accounts in the near future.

However, 40 per cent of these potential users note that client education is one of the main barriers to entry.

Head of SPDR ETFs for Australia and Singapore at SSGA, Meaghan Victor, said the number of advisers recommending managed accounts reached the highest level ever in 2019 and there remains many more who are interested in the solution.

“These potential users have strong appetite to build their understanding further as they want to tap into the tangible benefits reported by current users,” Ms Victor said.

“These include improved investment performance, transparency, enhanced client engagement, cost effectiveness and less administration.”

Investment Trends Australia chief executive Michael Blomfield said those who use managed accounts recognise a wide range of client benefits.

“More than half believe transparency is the key attraction for clients and 30 per cent report that following the implementation of managed accounts, investment returns achieved by their clients has increased,” he said.

“This is accompanied by 44 per cent of users saying client engagement has increased.”

The report is based on an online survey of 760 financial planners conducted between 3 December 2018 and 1 February 2019.

Adrian Flores

Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.

You can contact him on [email protected].