Introducing managed accounts to your business

So you’ve decided that managed accounts are the best way forward for your business. Where to from here?

Managed accounts are a logical solution to free up time for quality advice conversations instead of portfolio management and administration. And the evidence speaks for itself: 75% of advisers who recommend managed accounts to their clients say they now spend less time on administration and compliance.[1]

But what exactly is involved with introducing managed accounts to your business, and is it worth the effort?

A solution for every business model

Laird Abernethy, Head of Retail Sales at Colonial First State, explained that not all managed account solutions are alike, so it’s important to find the right fit for your business model.

“Managed accounts range from simple, out-of-the-box options to highly personalised solutions,” he said. “It all depends on your value proposition and the type of service you want to provide to your clients. There’s no point offering your clients bells and whistles when all they need is a straight-forward managed portfolio.”

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The bells and whistles Laird refers to could include full-service, bespoke managed account solutions that provide clients with access to complex investments, or Individually Managed Accounts (IMAs) that are typically customised at a client level.  

The more straight-forward options are Separately Managed Accounts (SMAs), which combine scalability with individual client needs, and on-platform managed portfolios that provide clients with a simple, one-size-fits-all solution — often at no extra cost.

Keep in mind that different providers can define managed accounts in different ways, so it pays to do your research about how products compare.

Getting your business ready

The effort involved in introducing managed accounts to your business will depend on which solution you choose. Some will be as simple as updating your Approved Products List, while others will require specific legal and regulatory structures to be set up and due diligence to be completed.

“Introducing managed accounts can be a big time commitment for a business,” Laird said. “But if the solution is appropriate for the business and its clients, then the benefits of efficiency, flexibility and scalability will be well and truly worth the effort in the long run.”

Colonial First State’s managed account solutions

Whether you’re after simple and efficient on-platform portfolios, more comprehensive portfolios with complex investments, or a tailored managed account solution to meet your precise requirements, Colonial First State has a solution that’s right for you. Speak to your Colonial First State Business Development Manager or visit colonialfirststate.com.au/managedaccounts.

Managed Accounts on FirstChoice will be available from November 2017. Managed Accounts on FirstWrap and tailored managed accounts will be available in 2018.

Colonial First State Investments Limited ABN 98 002 348 352, AFS Licence 232468 (Colonial First State) is the issuer of super, pension and investment products. Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 (Avanteos) is the issuer of the FirstWrap super and pension products from the Avanteos Superannuation Trust ABN 38 876 896 681. Avanteos also issues interests and operates investments under FirstWrap. This document may include general advice but does not take into account your individual objectives, financial situation or needs. You should read the relevant Product Disclosure Statement (PDS) carefully and assess whether the information is appropriate for you and consider talking to a financial adviser before making an investment decision. A PDS for Colonial First State’s products are available at colonialfirststate.com.au or by calling us on 13 18 36.