Through the managed accounts lens - Listed investment choices: Transforming managed account investing

Advancements in technology has been a “great enabler” for listed investment products, effectively making the ASX an ideal platform for advice solutions.

This was the key takeout from a panel discussion on how listed investment choices are transforming managed account investing.

According to BetaShares Director – Institutional Business and National Accounts, Vinnie Wadhera, technology is enabling managed accounts in a way it has never done before.

“Through regulatory innovation (MySuper) and intervention (FoFA), we’re seeing a greater obligation placed on the industry for lower cost solutions for consumers. And this isn’t just confined to Australia. Globally, we’re seeing stock exchanges investing in their own technologies, to help streamline and deliver cost efficiencies to investors.”

It’s a view supported by Magellan General Manager (Distribution), Frank Casarotti, who points to the current size of the ETF market, which globally stands at $3 trillion.

“Magellan saw the potential of listed investments and jumped on board a couple of years ago,” Casarotti said. “Our motivation for doing so was really client related. Our clients told us they didn’t want to wade through 19 page documents in order to invest in a managed fund. They wanted a simpler solution.

“So, we talked to ASIC and the ASX about developing an active ETF that provided more exposure to active management and could be traded with live pricing. Two years later, and with $850 million FUM, we know it was the right decision to make.”

With nine active ETFs available to Australian investors, including from the likes of Schroders and K2 Asset Management, both Wadhera and Casarotti were confident that actively listed investments will continue to create sustained interest amongst fund managers and investors alike.

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