Through the managed accounts lens - Maximising the managed accounts opportunity

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Maximising the managed accounts opportunity


The preoccupation that planners spend on fees and pricing their advice model for clients, isn’t a key driver of client satisfaction, according to the latest Macquarie Propensity Study.

In an absorbing opening keynote presentation on ‘Maximising the managed accounts opportunity’, Macquarie head of client strategy, Sherise Mercer said clients were more interested in the ‘personalisation’ of the advice service provided by planners than the fees they paid them.

According to Mercer, the five most valued drivers of client satisfaction are:

  • My adviser manages my portfolio for risk and return;
  • I receive the right level of information about my progress;
  • My adviser uses other professionals as needed;
  • My adviser proactively manages my affairs; and
  • My adviser helps improve my financial knowledge.

“But planners need to remember that managed accounts are not a plug in, plug out solution,” Mercer said. “When it comes to managed accounts, our research shows that ‘personalisation’ is where the value is; that the process is personalised for the client. It’s this personalisation of the investment process that is most important for the client.

“However, personalisation doesn’t mean the client’s portfolio has to be customised. A portfolio can be systemised. What’s important is that the client’s experience with their adviser and portfolio is personalised.”

Mercer added that the Macquarie 2015/16 AFS Benchmarking report also offered some significant insights on the six “pain points” holding planning businesses back from being more efficient. These included:

  • Administration, emails, paperwork and compliance;
  • Increased regulation;
  • Scaleability of current processes;
  •  Managing risks;
  • Cost and margin pressures; and
  • Managing growth.

“These are all issues that planners face everyday. But we know, with Macquarie having worked with 80 high performing practices, that managed accounts can be the solution to these pain points,” Mercer said. “Managed accounts can do this by effectively bypassing these pain points and thereby enabling planning practices to be more efficient and streamlined in their service offering and value proposition.”

According to Mercer, a managed accounts solution is ideal for planning practices, as they offer:

  1. Scaleable portfolio management;
  2. Reduction in the total cost to clients;
  3. Efficient and quality data feeds: and
  4. Reduced corporate action management.

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