The major financial institutions’ recent uptake of separately managed accounts on their investment platforms will not provide the promised benefits to users, says Implemented Portfolios.
In an opinion article published by InvestorDaily sister title ifa, Implemented Portfolios co-founder and co-chief executive Santi Burridge said recent marketing and distribution activity by the institutions is reflective of the “bastardisation of managed accounts”.
"The new wave of 'managed account platforms' are just new products, and I do not see advisers' day-to-day lives being improved one iota by making the decision to become a portfolio manager on a platform,” Mr Burridge wrote.
“Under this current industry approach, I believe advisers are going to be left very disappointed.”
Mr Burridge, who has undertaken a number of study tours abroad, said global best practice for financial advisers has been to “mass portfolio customise” and the recent offers from many SMA providers does not allow for this.
“I am frustrated as I hear my colleagues move their business models from an advice model that is akin to an IMA, where every client is treated individually, to an SMA where they hope the manager does a good job,” he said.
Diverger Wealth Holdings, wholly-owned subsidiary of Diverger Limited, has executed a 35 per cent equity interest in McGregor Wealth Managem...