Advisers making increasingly informed decisions regarding managed accounts

With the proliferation of managed accounts and products to choose from, advisers are increasingly making informed decisions when looking to make the switch, BT has said.

In a statement this week, BT explained that given the opportunity and well before implementation, advisers are opting to test whether managed accounts’ promised efficiency gains hold true for their business.

Earlier this year, BT launched a complimentary transition service, effectively enabling advisers to try managed accounts before they buy. What it found is that this service proved very popular among advisers.

BT’s head of managed accounts, Zac Leman, owes BT Panorama’s 2022 growth to its test-before-you-buy offer.

Namely, in the 12 months to November 2022, the number of advisers using managed accounts on BT Panorama had risen by 17 per cent to 1,567 advisers.

“Currently, around a quarter of advisers on the platform are using managed accounts, so we see potential for further growth generating from other advisers on the platform who have yet to transition to managed accounts,” Mr Leman said.

Among other trends witnessed across managed accounts and how advisers interacted with this product in 2022, Mr Leman pinpointed increased communication during periods of market volatility.

According to BT, investment managers have generally increased the frequency of their communications to advisers to help them disseminate the information to clients.

For example, BlackRock has increased the number of updates from portfolio managers on the global outlook, as well as reinforcing investment basics such as staying invested for the long term and diversification. Lonsec has also stepped up its communications, while Drummond Capital has done the same, in line with increased trading activity.

Moreover, BT drew attention to another interesting trend — one that saw investment managers become influencers.

Mr Leman explained that recent market volatility had brought investment managers and advisers closer together amid more frequent contact. As a result, what BT found is that an investment manager’s user experience can influence an adviser’s perception of the platform they’re using.

“An investment manager’s feedback would weigh heavily on an adviser’s decision to use the platform — managers are influential advocates and platform stakeholders in their own right,” Mr Leman said.

Lastly, in 2022, Mr Leman also witnessed interest in ESG escalating, which pushed the likes of BT to add more sustainably focused managed accounts to BT Panorama. Namely, in November 2021, only five managed accounts had a sustainability focus on BT Panorama. In the 12 months thereafter, seven more had joined the platform.

“The rise of managed accounts looks set to continue in the year ahead. We look forward to bringing new capability to the platform, to assist advisers in managing their client portfolios and improving operational efficiency,” concluded Mr Leman.