Why managed accounts can simplify risk advice

 

Why managed accounts can simplify risk advice

Yes

Mat Walker, a wealth solutions executive at Ventura FM (a Centrepoint subsidiary) talks about the growth in managed accounts in Australia and how risk advisers can use them to provide a cost effective service for their clients.

 

It has been a year since the launch of Ventura Managed Account Portfolios (vMAPs). What has been the reaction from advisers and how have the flows been?

The reaction from advisers to the vMAPs has been very strong, with more than 130 registered to use the service. Managed Accounts are utilised extensively in the US as a core solution used by advisers for clients. In Australia, while the concept has been around in various forms for a little while there has been a fair bit of adviser education required in the early stages.

The education we have provided over the past 12 months is really resonating as while we have reached the first $100 million in FUM, we are also receiving $12 million per month in new flows, with this momentum growing rapidly each month.

How does your service assist risk advisers specifically?

In relation to risk advisers, the concept provides simplicity for the investment aspect of the advice they are providing to their clients. vMAPs has a range of insurers integrated with the service for funding premiums that risk advisers can use while keeping the investment aspect simple via partnering or outsourcing the investment management to world class investment managers that we have facilitated.

The investment models managed by these world class managers have also been designed to fit well from an asset allocation perspective with the client risk profiles that risk advisers and other advisers often use.

What has been the reaction from risk advisers?

Its early days but we have had good support already from risk advisers who see the benefits of being able to put in place relevant insurance cover for their clients coupled with simple investment options that are professionally managed at a very competitive price. This provides easy to understand, transparent and cost effective solutions for their clients with the practice efficiencies (administrative and investment related) benefits inherent in the vMAPs managed account structure.

These efficiencies enable the advisers to be able to spend more time on client engagement rather than administration.

Can non-aligned risk advisers benefit from using managed accounts?

Non-aligned advisers benefit from the simplicity for clients and inherent practice efficiency benefits of vMAPs while having access to a choice of integrated insurers and world class investment model managers. They can also fund premiums to other insurance providers outside the integrated options if required.

Is there anything new on the horizon that Risk Adviser readers should be aware of?

We will be releasing information in the next few weeks in relation to additional world class investment managers and investment models we have added to the service for the advisers to choose from for their clients.

Our philosophy at Ventura is to facilitate high quality investment managers with global research capability that advisers can partner with for portfolio management and a choice of investment styles consistent with each advice practice’s investment philosophy.

Why managed accounts can simplify risk advice
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