Managed Accounts

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A managed account provides investors with access to portfolios created and monitored by a professional investment manager via model portfolios. The investment manager is responsible for the investment decisions relating to the portfolio including the underlying investments held within the portfolio, as well as the portfolio weights and portfolio rebalancing.

The issuer of a managed account is typically a platform provider, who implements the model portfolios on behalf of investors based on the investment manager’s advice. Managed portfolios on platforms are overseen by an appointed responsible entity (RE) or superannuation trustee.

Managed accounts are professionally managed portfolios which can include investments in multiple asset classes and investment types including direct equities, managed funds and ETFs. They are overseen by investment professionals, with all the benefits of research, implementation and reporting. They are a way for financial adviser's clients to access these types of investments in a diversified, consolidated and transparent portfolio.

From a practice management perspective, managed accounts offer a scalable investment solution that help financial advisers to streamline traditional portfolio construction and monitoring, freeing their time to focus on client relationships and strategic advice as well as building the practice, while outsourcing the day to day portfolio management to experienced investment consultants.

• Improved compliance and a clear way to meet best interests duty
• Business and operational risk management
• Efficiency of implementation
• More time to focus on engaging with clients and managing your business
• Increased value proposition
• Reduced operational and research burden

• Equitable treatment of clients through the removal of implementation drag
• Return and risk improvements from ongoing rebalancing
• Access to professional investment management
• Simple access to diversification
• Efficient portfolio changes including dynamic asset allocation
• Better tax efficiency
• More transparency 

• Do you have (or intend to develop) a clear investment philosophy?
• Is the way you invest part of your value proposition?
• Is your team aligned in your investment approach?
• Are you a service business or a stewardship business?
• Are you viewing managed accounts through the lens of strategic change management?
• Do you have the governance capacity for a private label program?
• Are the managed accounts going to be the entirety of your offering  or a component?
• Why are you thinking about adopting managed accounts?
• Is it for your firm? Or is it for your clients?

• Firms that are self-licensed or in control of their own investment program.
• Firms that have a clear investment approach and articulate this philosophy.
• Where clients expect the firm to build a portfolio rather than just invest in  someone else’s.
• Firms prepared to invest in governance and the development and  onboarding time.
• Where the advice team is aligned.