Four fold increase in world managed account market
INVESTOR enthusiasm for managed accounts, which include unified managed accounts, separately managed accounts and wraps, is expected to continue as the value of assets held in such products hits more than $1.3 trillion globally.
Between 1997 and 2005, funds in managed accounts more than quadrupled, including a $500 billion leap over the past two-and-a-half years, according to a report from Cerulli Associates.
However, Cerulli analyst Jeffrey Strange, who wrote the report, told Money Management the excitement about the potential of managed accounts was hampered by “noise” in the form of new product packaging, new platforms and shifting definitions and acronyms.
“The potential of managed accounts lies in product-neutral platforms that are driven by individual client need, while being agnostic to packaging,” he said.
In the report, Cerulli recommends intermediaries work towards having all managed account programs supported by one centralised managed account group.
“The more unified the [managed account group], the more consistent the voice and offering from the home office that can be communicated to advisers and subsequently to clients,” Strange said in the report.
He also claimed adviser education tended to be overly product-oriented.
Recommended for you
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
