As the use of managed accounts continues to grow, host Maja Garaca Djurdjevic is this week joined by HUB24 head of managed portfolios Brett Mennie, Elixir Consulting expert business strategist Graham Burnard, WOW Women Group founder and CEO Tracey Sofra and Private Wealth Partners financial adviser Damien Skidmore to discuss their biggest benefits.
“Running a practice has now become quite complex, quite compliance and burden-orientated. Costs have gone up in delivering advice to clients and advisers are looking for, within their practice, to become more efficient, looking at where their time is spent,” said Mr Mennie.
“Managed accounts solve that dilemma while also reducing risk in the practice, so it more systematises the practice.”
Combating the cost of delay, having professional management oversight and deepening the client relationship was among the key benefits highlighted by this week’s guests.
Ms Sofra and Mr Skidmore also shared their own perspectives on transitioning to managed accounts, while Mr Burnard stressed the importance of having a plan in place before making the jump.
I love Tracey Sofra she’s a really great speaker!
Tracey Sofra has this spot on – the others seem to me to be missing the point. Tracey is a financial planner. If you are an investment advisor, not a financial planner, then yes using managed accounts will save you time – but it would be a different service you are then offering. As a parallel, advising on a house layout that will better suit your client’s lifestyle needs and advising on their choice of construction materials, are two entirely different services. Managed accounts are a brilliant product offering, but trying to sell them by saying ‘they will save you money’, is I think misleading. If you want to concentrate on financial advice the advantage is clear. If your value proposition is your supreme investment selection skill, first good luck to you but second, I would think you would be selling yourself short by outsourcing that to someone else. For financial planners, managed accounts are great.