Separately managed accounts deepen the adviser-client relationship

Promoted by MLC Asset Management 

There’s no doubting the demand for separately managed accounts with their transparency and efficiency appealing to both advisers and their clients.

Earlier this year, MLC Wealth undertook a pulse check of investor sentiment1 — covering MLC investors as well as non-MLC investors — regarding the coronavirus and its impacts.

There were two key findings. Firstly, investors were more worried about the financial implications of the pandemic than health issues. Secondly, investors regard their financial adviser as the source of truth on economic and investment issues.

A logical consequence of these findings is that advisers need to be there for their clients first and foremost, rather than be caught up in administration and processing.

Given this context, the launch of MLC Asset Management’s (MLC) Managed Account Strategies is timely. By taking care of asset allocation, portfolio construction and security selection, MLC’s Managed Account Strategies give investors and advisers more time to work together.

There’s no doubting the demand for separately managed accounts with their transparency, efficiency and goal-focused characteristics appealing to advisers and their clients.

Managed accounts now an $80 billion market

Australia now has nearly $80 billion in assets under management (AUM)2 in managed accounts as investors and their advisers continue to be attracted to the simplicity of accessing professionally managed portfolios which offer exposure to leading investment managers while allowing them to retain direct ownership of the underlying investments.

MLC currently has more than $1.2 billion in AUM in its single asset class managed accounts, and the launch of MLC Managed Account Strategies extends the capability to multi-asset strategies.

The evolution of MLC’s Managed Accounts Strategies builds on the company’s heritage and expands the wealth management solutions available to Australian investors.

 Unique Investment Futures Framework underpins MLC’s Managed Account Strategies 

MLC Managed Account Strategies leverages MLC’s proven investment management experience and unique Investment Futures Framework,3 with asset allocation across the ‘moderate’, ‘assertive’ and ‘aggressive’ portfolios designed and actively managed by MLC’s investment team.

The portfolios are strategically diversified across asset classes and tap the expertise of high quality fund managers from around the globe, aligned to the stated risk profile and objective.

Depending on investors’ preferences, MLC offers Premium models, which are fully active portfolios positioned to take advantage of market opportunities, and Value models, which use a combination of active management in asset classes where it matters most and passive in other asset classes to keep costs low.

The portfolios are designed to ensure that investors are well positioned to achieve their investment goals, in line with their risk appetite and fee expectations. The structure incorporates market-leading reporting and enables direct ownership in the underlying assets. This gives investors flexibility as well as tax-efficiencies.

The events of the past few months are likely to spur greater interest in managed accounts as market volatility raises a desire for more transparency of your investments.

The ability to quickly adjust multiple client portfolios is crucial for advisers. Managed accounts can pivot to protect clients’ capital – and just as nimbly take advantage of opportunities created by market dislocations.

For more information on the MLC Managed Account Strategies, click here.

 

1 Source: MLC Community and Client Research – Coronavirus Pandemic, March 2020, Nature Research
2 Institute of Managed Accounts Professional (IMAP), 31 December 2019
3 MLC: How we invest www.mlc.com.au/adviser/investments/mlc-inflation-plus/how-we-invest

 

Separately managed accounts deepen the adviser-client relationship
default
ifa logo

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.