Guide to Managed Accounts 2022
While managed accounts have grown steadily over the years, this year has been an especially strong year for the structure. As mentioned in the latest edition of Money Management Managed Accounts Guide, funds under management in the space have passed $100 billion as advisers increasingly choose the structure for their clients.
They are also being used for a wider number of clients rather than the traditional high-net-worth investors. While advisers acknowledge their main client base for the structure are affluent clients, they also report using them for self-managed superannuation funds and younger clients with fewer assets as providers slash costs.
This evidence of the broad types of usage demonstrates how mainstream they have become with the number of advisers recommending them rising from 44% in 2021 to 60% in 2022, according to State Street Global Advisors.
It is likely this growth will continue in the future as advisers acknowledge the benefits they can bring to their businesses via the reporting, transaction and portfolio management capabilities and the reduction in work needed to deliver advice to the client.
Research found advisers who used managed accounts are able to have an average of 7.4 weekly clients compared to the industrywide standard of six per week.
Click here to download as a PDF
Recommended for you
A global pandemic represents a real challenge for those giving advice around retirement incomes, but there are plenty of strategy sign posts available
Managed account growth has continued throughout the COVID-19 pandemic
Managed accounts structures demonstrate maturity in face of COVID-19