"They don't trust the system," Ryan said. "They want advice, they want to be given good advice, but then they want to participate in the outcomes - and that's what managed accounts from a financial services point-of-view allow these people to do, and we're seeing that around the world."
He also told the IMAP crowd that fund managers and managed account providers were complementary rather than competitors.
"Managed funds are a big part of our business at Perpetual, it's a big part of the Australian market, and they will continue to be strong," he said.
"Good managed funds will survive, but I think average managed funds will find it tough in the next 10 years."
Toby Potter, IMAP chair, told the relaunch crowd that the industry organisation has been reinvigorated by increasing demand.
"IMAP is intended to be a forum where advisory groups, individual advisers, platform providers, technology providers, investment managers, custodians can actually get together and start consider their responses to what has become a very significant new emerging force," Potter said.
Managed accounts go mainstream
Back-office super and fund admin firm MainstreamBPO has made a tilt for the managed account market via its FundBPO offshoot.
FundBPO said the new service, launched late in March via the IRESS Portfolio System, offered a range of functions including straight-through processing, customised client reporting, custody reconcilations, email trade confirmations, tax reporting and fee processing.
"We have leveraged our expertise in fund administration and adopted it to this new technology," FundBPO said in a statement. "FundBPO believes managed accounts are going to see growing popularity over the coming years as an alternative to managed funds due to the capital gains tax advantages and principles of equity required between investors. It can also be a new form of revenue for advisers adapting to some of the commission constraints." The company said it could provide the technology for fund managers wishing to produce "mirror" versions of existing products under a managed accounts structure.