‘Managed account platforms’ dismissed as spin

‘Managed account platforms’ dismissed as spin

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.

“I have documented in the past why this model fails the client and the adviser test, and I have seen nothing in my travels to contradict my long-held view that an SMA is just another product.

“For the record, a managed account is not a platform and an SMA is a transparent managed fund, and most top performing businesses I meet run IMAs where they treat every client individually, review them one-by-one but run this process by people and pen and paper.”

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‘Managed account platforms’ dismissed as spin
Implemented Portfolios, Santi Burridge, IMA, SMA, managed accounts
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