Managed accounts continue to gain momentum as advisers prioritise efficiency and integration
Managed accounts continue to gain momentum as advisers prioritise efficiency and integration
Australian financial advisers using managed accounts are reporting unprecedented client outcome improvements, with 88% experiencing positive results according to comprehensive new research from platform provider Praemium.
The research, surveying advisers across Australia, reveals that three in five advisers have adopted managed accounts and 81% have a strong understanding of them, positioning Australia as an emerging global leader in the solution.
According to the research, Separately Managed Accounts (SMAs) are the most popular structure (used by 88% of managed accounts users). The primary drivers for adoption, are operational efficiency (72% of managed account users cite this) and access to professional investment management (67%), benefits that translate directly into scalability and time savings.
The research quantifies significant efficiency gains, with 25% of managed account users reclaiming a full working day per week on portfolio management activities, and an additional 28% report saving 4-6 hours weekly through operational efficiency gains. Over half of those using the solution noted that adopting managed accounts has made it easier to scale their business, with 35% stating it allowed them to take on more clients.
“Managed accounts are enabling advisers to shift their focus from portfolio construction to strategic advice and client relationship management,” said Praemium’s Chief Strategy Officer, Denis Orrock. “This evolution is critical as practices look to scale and differentiate in a competitive environment.”
The report also highlights the importance of platform integration. Portfolio reporting tools and seamless connectivity with financial planning software were cited as essential by 69% and 61% of users respectively, followed by tax reporting tools (55%).
“These integrations are not just nice-to-haves, they’re foundational to delivering a streamlined experience for both advisers and clients. Our continued investment in reporting and connectivity reflects our belief that advisers deserve tools that work together seamlessly, saving time, reducing complexity, and enhancing client outcomes. As the managed account space evolves, so too does our platform, with a clear focus on scalability, transparency, and adviser efficiency.” Orrock adds.
Despite some lingering concerns among non-users, such as perceived loss of control and uncertainty around value – 63% of those not currently using managed accounts are considering adoption in the future. This signals a significant opportunity for future market growth, as the solution evolves from an operational tool to an integral component of a holistic advice model.
Key Statistics:
- 62% of advisers currently use managed accounts.
- 25% save over 7 hours per week; another 28% save 4–6 hours.
- 88% of users report improved client outcomes.
- 69% cite portfolio reporting tools as essential;
- 61% cite planning software integration.
- 67% of users achieved more consistency in their client offering.
For a copy of the research visit praemium.com/elevate