The momentum towards managed accounts is unmistakable. A noteworthy jump from 17% to 56% in the decade to 2023, with Investment Trends highlighting that more advisers are tapping into its potential. By the end of 2022, $144.5B was under management in this model, as noted by IMAP.
In 2022, the most successful financial planning businesses operate a model focused on client-centric holistic strategic advice, rather than investment management, as their key service offering.
The Merriam-Webster Dictionary defines the word solution as: the action or process of solving a problem. Using this definition is a helpful way of assessing the benefit of the many investment solutions available to advisers today. Does what's on offer genuinely solve your business problem?
The superannuation and investment market is rapidly transitioning to Managed Accounts, with many also electing to use Managed Portfolio solutions as part of that transition. Funds in Managed Accounts are now estimated to be over $145B*. It's for good reason. Increasing client awareness and the rising costs of compliance reducing adviser margins demand new ways to satisfy clients and drive business efficiency.
Investment portfolio management is central to every financial adviser's value proposition and day-to-day life. How you go about portfolio management for your clients and your business creates client value and maximises your workflow efficiency.
It was nearly 60 years ago, back in 1964, that Bob Dylan wrote his anthem of change: The Times They Are a-Changin'. And so they were.
As the pressure on the economy and markets rises, so too does the business risk that financial advisers face in relation to being able to deliver portfolio returns client's need and to any investment-linked revenue.
Structural changes in global investment markets are casting doubt on the revered 60/40 asset allocation traditionally utilised by financial advisors. Rather than boosting returns and protecting investors during downturns, it could fail to deliver an adequate mix of protection and returns.
Listed Australian Financial Services Group, InterPrac, has added Dynamic Asset Managed Account portfolios to their Approved Product List (APL).
When prospective clients ask why they should choose your advice firm over another, are you able to provide them with a compelling reason that clearly makes you stand out from the competition?
