Managed accounts turbo-charge efficiencies for advice practices
In today’s world of onerous regulatory obligations and an increasingly uncertain economic landscape, many practices are turning to managed accounts to help them increase back office efficiencies and grow their business.
Managed accounts offer a business model that allows advisers to focus on their strengths, position their firm as thought leaders and reduce compliance risk. The client benefits are equally as powerful…beneficial ownership of their investments, individual tax treatment and increased transparency.
Historically, if advisers wanted to make changes to a client’s portfolio, they had to write to clients to make the change, obtain the client’s authority, send it to the fund manager or platform provider and then execute the change. This process in total could take up to a month and hours of back office administration.
This produces an environment in which principals, practice managers and advisers are bogged down in paperwork that, while necessary, is often not perceived as adding value to clients. With some managed account solutions this process is essentially outsourced to a professional investment manager.
Here are five ways managed accounts can benefit advisers and their clients:
- Back office efficiency: Substantial reduction in the time spent by para-planners preparing documentation.
- Greater risk oversight and control for licensees: The ability to ensure investment portfolios are implemented consistently across all clients.
- Opportunity to migrate the entire client base to an extremely efficient platform: Reduction in time spent executing transactions for clients and managing their portfolios.
- More time to spend with clients: More hours in the day to have meaningful financial planning conversations with clients.
- Support substantial scalability: Greater time to invest in growing the business.
Colonial First State has long-term experience offering managed accounts in the Australian market. It administers more than $6 billion in managed account structures on its FirstWrap platform.
For more information on managed accounts, talk to your Colonial First State BDM or visit us.
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