Managed accounts enhance advice, says whitepaper

Managed accounts drive better client engagement and improve the delivery of financial advice, according to a new whitepaper.

The whitepaper by Colonial First State showed that managed accounts were able to improve client engagement, provide better risk management and boosted business performance. 

In fact, 87 per cent of managed account users reported reduced administration within their business and 73 per cent reported improved client engagement. 

Advisers that used managed accounts were spending 23 per cent more time in client appointments each, with 73 per cent reporting improved client outcomes and 70 per cent reporting improved risk control of client portfolios. 

Colonial First State general manager of distribution Peter Chun said the whitepaper had taken knowledge that was anecdotal and provided clear figures. 

“This whitepaper, Managed accounts: Building your Future Business, takes what we’ve known anecdotally and provides insights and clear data to support the benefits that managed accounts can bring to an advice practice,” he said. 

Advertisement
Advertisement

Mr Chun said the whitepaper covered 30 managed account practices benchmarked against 226 financial advisory firms and 45,000 clients. 

He said it was clear that managed accounts were of huge benefit to the advisers that used it for a variety of reasons. 

“The results speak for themselves: whether it’s improving client engagement, providing better risk management or boosting business performance. What’s more, we can see these benefits continue to grow as managed accounts are further embedded into an advice practice over time,” he said. 

The whitepaper was conduced by Business Health, which said the key benefit of managed accounts is in improved client engagement. 

“Practices using managed accounts are now able to spend more time with their clients, whether it be through face-to-face meetings or simply communication touch points. This results in higher levels of client retention,” said Terry Bell from Business Health. 

“It’s also clear from the research that these benefits accelerate over time as managed accounts are embedded into an advice practice.”

Managed accounts enhance advice, says whitepaper
technology
ifa logo
Eliot Hastie

Eliot Hastie

Eliot Hastie is a journalist at Momentum Media, writing primarily for its wealth and financial services platforms. 

Eliot joined the team in 2018 having previously written on Real Estate Business with Momentum Media as well.

Eliot graduated from the University of Westminster, UK with a Bachelor of Arts (Journalism).

You can email him on: [email protected]

Subscribe to the ifa bulletin

Receive daily online news,analysis, reports and business strategies
By signing up you agree to our Terms of Use and Privacy Policy

from the web

Website Notifications

Get notifications in real time and stay up to date with content that matters to you.