Managed Portfolios: A sound investment in your clients and your business

Hub24 considers the growing trend of managed portfolios overseas and the significant benefit they offer clients, advisers and practice staff.

It’s no secret that financial advisers are under increasing pressure to grow their business, which means focusing on revenue growth and profitability, as well as delivering quality financial product advice to their clients in the context of an increasing and ever-changing regulatory and compliance environment.

Most importantly, advisers are looking for ways to add value for their clients.

Following improvements in technology, managed portfolios have the potential to streamline administrative operations and deliver measurable gains to clients, and advisers, in terms of outcomes and costs.

Uptake of new technologies – especially those that challenge the status quo – can often be slow, and despite their many benefits, research by CoreData¹ suggests only one-third of advisers in Australia are using managed portfolios within their practice. A lack of understanding about the potential benefits available and how platforms are delivering these solutions is often a key impediment to their take-up, yet the concept is remarkably straightforward.

In essence, a managed portfolio is a package of a diverse range of investments, which may encompass traditional managed funds, and listed securities, including exchange traded funds and listed investment companies, as well as cash-based assets, such as term deposits, that is managed by a professional investment manager within the framework of an investor directed portfolio service (IDPS) or super wrap platform.

The client can provide a standing instruction in relation to the investments in the managed portfolio – so those investments remain investor directed. Those investments, however, typically reflect the investment strategy developed by a professional investment manager, who is responsible for the development and ongoing monitoring of the investment strategy of the managed portfolio. This means investment rebalancing and reallocation of investments within the managed portfolio can occur seamlessly as and when required.

There can be important benefits to the client of holding such a portfolio: exposure to a broad selection of asset classes enabling risk management and the pursuit of growth objectives, access to professional investment managers, and the potential for tax efficiencies that are not available through investing in traditional managed investment schemes.

For advisers, the ability to collaborate, outsource or partly outsource investment management in accordance with a client’s standing instruction, can provide new opportunities to reduce or remove some of the burden associated with records of advice (ROAs).

The ability to construct managed portfolios that can speak to the needs of different types of clients, while reducing the administrative burden, has the potential to enable a greater focus on the core function of providing holistic planning and strategic advice for their clients.

Next Events

IMAP's 2024 Advice in Action Conference

In 2024 this IMAP Advice in Action Conference puts the use of technology and digitisation in the spotlight for Advisers & Clients

Reaching "best practice" level in a digitalised advice business is a challenge to every advice practice.. our speakers will help you get on the right page by exploring

  • Getting centred on platforms' roles in helping your busienss to grow
  • How to go paperless for new & emerging clients, and provide relevant service to existing clients
  • Helping the next generation be safer for their financial future
  • Making the most of multi-generational relationships with families and more...

WHEN & WHERE

23rd July 2023 - Melbourne CBD - "Zinc"
20th July 2023 - Sydney CBD - "Amora on Jamieson

REGISTER USING THE LINK BELOW FOR EARLY BIRD RATES BEFORE 30 JUNE 2024

IMAP's Managed Account Awards 2024 are here.

Optimising Clients' Portfolios in 2024

The IMAP 2024 Managed Account Awards provide our industry the opportunity to recognising best in class for Managed Account Licensees, Boutique Licensees, Innovators, and Investment Asset providers plus Responsible Investing Portfolios.

The Awards have showcased a wide range of providers who are recognised for their work and accomplishments. (see IMAP Past events for more details)

Entries are now closed and judging is commencing - the finalists in each category will be announced on 1st August 2024

IMAP wishes everyone the best and please ask the Awards team how we can help

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