With technology at their core, platforms can provide advice practices and licensees with key business efficiencies and value-adds while delivering their customers greater transparency and an attractive value proposition.

Managed portfolios allow advisers to customise their client accounts while delivering a scalable, efficient client value proposition in a cost-effective manner. The ability to optimise tax outcomes at an individual account or portfolio level, as well as reduce transaction fees via trade netting, have also proven attractive to financial advisers.

Technology is clearly an enabler for the new wave of managed portfolio solutions and their demand is a result of advisers looking for efficient methods to deliver seamless, responsive, timely portfolio administration and greater client service.

Managed portfolios can offer advisers the opportunity to re-engineer their practices, giving them more time with their clients and emphasising the value in strategic advice.

And their growth is expected to accelerate.

According to the January 2023 Investment Trends Managed Accounts Report, managed accounts usage amongst advisers surveyed has grown from 35% to 56% in just the last 5 years. Additionally in the same report, allocation for new client inflows for managed accounts doubled from 12% in February 2020 to 24% in January 2023, while ETFs experienced slow growth from 10% to 11%.