Managed accounts can transform practices, advisers agree

For adviser Damien Skidmore, making the transition to managed accounts was a no brainer.

Speaking candidly on a recent ifa podcast, Mr Skidmore said that his firm, Private Wealth Partners, had no choice but to take that leap.

“You're coming to a point where the numbers are so huge in terms of the amount of funds that you're looking after, the number of clients that you're looking after. And we've become almost tradey-like in a way,” Mr Skidmore explained.

“It's hard to get a financial planner now, or certainly, a good one. There simply aren't enough of us. We've probably gone down the road like most of turning clients away, as opposed to the other way around,” he noted.

As such, in order to cope with the increasing workload and still offer top-notch services to their clients, Private Wealth Partners took up managed accounts six months ago.

“It was around about six months ago and it was a 12-month process before that. As I said, it's a long road.

“What makes it better? Look, we have a much better client narrative now. It’s a much more transparent process for the client. It's a better cost process for the client,” Mr Skidmore explained.

Providing an example of this improved narrative which his firm now offers its clients, Mr Skidmore explained that when the inflation disaster first materialised, some of the brightest employees were able to dedicate additional, invaluable time to the firm’s clients.  

“We were able to bring in our head of equities, our head of asset allocation and myself, and we did a roundtable, sent it out to clients within an hour. It wasn't particularly polished, but that's what clients want.

“They want to hear our opinions and our views, and what we're changing behind the scenes and how that flows through to their portfolios. It's been a wonderful change so far in terms of that narrative to the client.”

For WOW Women Group founder and CEO Tracey Sofra, the journey was much the same.

Joining the ifa on this exclusive podcast, Ms Sofra said that while there is work involved, the long-term benefit were significant.

“It's absolutely brilliant,” Ms Sofra said.

For Ms Sofra, embracing managed account has allowed her to manage client handholding and to add an extra level of communication during what has been a difficult two years.

“I have relationships with my clients that surpasses 27, 28 years. I'm now advising their children. So it's intergenerational, so it's very deep relationships. These managed accounts obviously make life extremely easy and way more efficient from an investment point of view.

“But that's one piece of the financial planning puzzle. The bigger part is the relationship part. You're a therapist, you're a marriage counsellor, you're a life coach, you are everything,” Ms Sofra explained.

Ultimately, having managed accounts at their disposal has allowed advisers to improve the level of investment capability they’re delivering to their clients.

“Why wouldn't we embrace this tech because it's faster, smarter and quicker than I am,” Ms Sofra concluded.

Tune into the podcast here.