Vanguard makes ‘significant expansion’ of managed accounts

Vanguard’s addition of its managed accounts to the two investment platforms was driven by increasing adviser demand and feedback. Previously, these products were only available through the Macquarie Wrap platform.

The strategies are now available to advisers on HUB24’s Discover, Core and Choice menus, as well as Netwealth’s Accelerator Core and Accelerator Plus menus.

Rachel White, head of financial adviser services at Vanguard Australia, said the addition of these investment platforms signifies a “significant expansion” of Vanguard’s managed account offerings through new distribution channels.

“Most importantly, it reflects the growing demand from advisers for gaining greater access to our diversified solutions, which until recently have only been available on the Macquarie Wrap platform,” she explained.

“Behind the increased adviser demand is a recognition that Vanguard’s leading-edge diversified managed account strategies make multi-asset portfolio construction simple and efficient, without compromising on sophistication or performance.”

Vanguard’s managed accounts offer four risk profiles, including conservative, balanced, growth and high growth. They provide low-cost diversification with exposure to more than 16,000 securities.

The investment firm’s strategies can be used as a standalone solution or as the core of a client’s portfolio, and mimic Vanguard’s other diversified funds.

Recent research from Investment Trends and SPDR revealed that up to three-quarters of advisers could be using managed accounts in the coming years. The ability to achieve full asset allocation is the primary factor driving usage, while newer users are influenced by the ease of setting up their own managed account and better research.

Additionally, funds under management (FUM) in managed accounts are approaching $200 billion, according to the Institute of Managed Account Professionals. Managed accounts saw strong gains in H2 2023, with FUM in the six months to 31 December rising from $161 billion to $194 billion, a rise of 20.4 per cent.

As at 31 January 2024, Vanguard has $13 trillion in assets under management globally, including $3.8 trillion in exchange-traded funds.