State Street Global Advisors and Investment Trends’ Investment Trends Managed Accounts Report found that despite challenges such as extreme market volatility and rising inflation, a “record number” of advisers are using managed accounts and recommending these to clients.
The research showed that over half (53 per cent) of advisers are using managed accounts; a significant increase from 16 per cent a decade ago.
Sixty per cent of advisers are now also recommending managed accounts to their clients, up from 44 per cent last year and 33 per cent pre-COVID (2019).
Currently, 20 per cent of client funds are invested into managed accounts – up from 4 per cent in 2015 – and is tipped to increase to 25 per cent by 2025.
Investment Trends CEO Sarah Brennan said the growing popularity of managed accounts is because advisers are seeing the benefits for a broader investor demographic.
“Part of the growth in managed accounts comes down to their growing suitability as a whole-of-portfolio solution for lower balanced clients (less than $100,000) and high-net-worth clients with more than $1 million in investable assets,” Ms Brennan said.
“What’s more, a third of managed account users say these structures are appropriate for millennials (aged under 35) and self-managed super funds (SMSFs).
"When it comes to implementing responsible investing solutions, the vast majority, or 76 per cent, of advisers prefer to do so within a managed accounts structure, suggesting they trust that ESG themes are best managed by professional investment managers.”
Neil Griffiths
Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.
Neil is also the host of the ifa show podcast.
