Managed account usage sees advisers expand client capacity
As three in five advisers (62 per cent) now report using managed accounts, according to a Praemium report, more than a third (35 per cent) said utilising these solutions has allowed them to take on more clients.
Based on a survey of 150 Australian advisers, developed by CoreData in conjunction with Praemium, some 72 per cent of managed account users said operational efficiency was one of the primary motivations for using these solutions.
Managed accounts have gained favour among advisers as they struggle to balance the high demand for service with growing operational costs and compliance burdens, as well as a stagnant population of advisers.
Among advisers using managed accounts, Praemium found that a quarter (25 per cent) were able to reclaim more than seven hours a week on portfolio management activities, while a further 28 per cent saved four to six hours through operational efficiency gains.
Notably, the firm said that more than half of advisers using managed accounts found that adopting managed accounts had “made it easier to scale their business”, pointing to the capacity gains they experienced.
Praemium chief strategy officer, Denis Orrock, said: “Managed accounts are enabling advisers to shift their focus from portfolio construction to strategic advice and client relationship management. This evolution is critical as practices look to scale and differentiate in a competitive environment.”
Meanwhile, 88 per cent of users reported improved client outcomes, and 67 per cent said they achieved more consistency in their client offering.
When it comes to using managed accounts, more than six in 10 advisers said portfolio reporting tools (69 per cent) and seamless connectivity with financial planning software (61 per cent) were essential to their ability to use these accounts, followed by access to tax reporting tools (55 per cent).
Noting the importance of platform integrations, Orrock said these capabilities are essential for providers delivering a streamlined experience for advice and client users.
“Our continued investment in reporting and connectivity reflects our belief that advisers deserve tools that work together seamlessly, saving time, reducing complexity, and enhancing client outcomes. As the managed account space evolves, so too does our platform, with a clear focus on scalability, transparency, and adviser efficiency.”
Of those not yet using managed accounts, 63 per cent said they were considering adoption in the future, however, non-users also raised concerns regarding the perceived loss of control and uncertainty around value of these solutions.
AUTHOR
Shy-Ann Arkinstall
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