Planners enthusiastic about managed accounts

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“Managed accounts are a large market – and growing quickly. It seems they really are the next big thing.”

Toby Potter CHAIR

A new study has found that 40 per cent of financial planners believe managed accounts are appropriate for lower balance clients, with 53 per cent of independent financial advisers saying they used managed accounts compared with 47 per cent of aligned planners.

The 2017 Planner Direct Equities and Managed Accounts research, a joint report by National Australia Bank (NAB) and Investment Trends, surveyed 474 financial planners regarding their views and use of direct shares and managed accounts.


The report found that while planner appetite for direct shares was declining, there was growing enthusiasm for managed accounts, which saw their use by planners increase for the fifth year in a row, with the largest year-on-year growth in the report’s eight-year history occurring over the past 12 months.

Commenting on the report’s findings, Investment Trends chief executive officer, Michael Blomfield said managed funds provide flexibility to the investor that “really allows them to see a true portfolio view of their investing”.

“I think once you can do that for them and do good reporting around that, around asset allocation, the mix of assets and the exposures, then I think people really start to feel engaged with their investing.”

Blomfield said that among those planners who had recommended managed accounts, 62 per cent indicated their clients had become more engaged as a result of this investment solution.

Also commenting on the report, NAB General Manager – Strategic Accounts, Susi Collas said managed accounts formed a key part of NAB’s focus, with plans to add a number of direct equities SMA model portfolios to its MLC Wrap and Navigator platforms over the coming months.

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