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Separately managed accounts deepen the adviser-client relationship

20 July 2020

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Earlier this year, MLC Wealth undertook a pulse check of investor sentiment1 — covering MLC investors as well as non-MLC investors — regarding the coronavirus and its impacts.

There were two key findings. Firstly, investors were more worried about the financial implications of the pandemic than health issues. Secondly, investors regard their financial adviser as the source of truth on economic and investment issues.

A logical consequence of these findings is that advisers need to be there for their clients first and foremost, rather than be caught up in administration and processing.

Given this context, the launch of MLC Asset Management’s (MLC) Managed Account Strategies is timely. By taking care of asset allocation, portfolio construction and security selection, MLC’s Managed Account Strategies give investors and advisers more time to work together.

There’s no doubting the demand for separately managed accounts with their transparency, efficiency and goal-focused characteristics appealing to advisers and their clients.

Australia now has nearly $80 billion in assets under management (AUM)2 in managed accounts as investors and their advisers continue to be attracted to the simplicity of accessing professionally managed portfolios which offer exposure to leading investment managers while allowing them to retain direct ownership of the underlying investments.

MLC currently has more than $1.2 billion in AUM in its single asset class managed accounts, and the launch of MLC Managed Account Strategies extends the capability to multi-asset strategies.

The evolution of MLC’s Managed Accounts Strategies builds on the company’s heritage and expands the wealth management solutions available to Australian investors.

MLC Managed Account Strategies leverages MLC’s proven investment management experience and unique Investment Futures Framework,3 with asset allocation across the ‘moderate’, ‘assertive’ and ‘aggressive’ portfolios designed and actively managed by MLC’s investment team.

The portfolios are strategically diversified across asset classes and tap the expertise of high quality fund managers from around the globe, aligned to the stated risk profile and objective.

Depending on investors’ preferences, MLC offers Premium models, which are fully active portfolios positioned to take advantage of market opportunities, and Value models, which use a combination of active management in asset classes where it matters most and passive in other asset classes to keep costs low.

The portfolios are designed to ensure that investors are well positioned to achieve their investment goals, in line with their risk appetite and fee expectations. The structure incorporates market-leading reporting and enables direct ownership in the underlying assets. This gives investors flexibility as well as tax-efficiencies.

The events of the past few months are likely to spur greater interest in managed accounts as market volatility raises a desire for more transparency of your investments.

The ability to quickly adjust multiple client portfolios is crucial for advisers. Managed accounts can pivot to protect clients’ capital – and just as nimbly take advantage of opportunities created by market dislocations.

MLC Managed Account Strategies are currently available via the MLC Wrap and Navigator platforms.

For more information on the MLC Managed Account Strategies, click here.

 

1 Source: MLC Community and Client Research – Coronavirus Pandemic, March 2020, Nature Research
2 Institute of Managed Accounts Professional (IMAP), 31 December 2019
3 MLC: How we invest www.mlc.com.au/adviser/investments/mlc-inflation-plus/how-we-invest

Important information

This communication has been prepared by MLC Asset Management Pty Ltd (MLCAM) (ABN 44 106 427 472, AFSL 308953), a member of the National Australia Bank Limited (ABN 12 004 044 937) group of companies (NAB Group).  NAB does not guarantee or otherwise accept any liability in respect of any financial product referred to in this publication or MLCAM’s services. This information is intended only for financial advisers and must not be distributed or communicated to “retail clients” as defined in the Corporations Act 2001 (Cth).

This information may constitute general financial advice. It has been prepared without taking account of an investor’s objectives, financial situation or needs and because of that a financial adviser and investor should, before acting on the advice, consider the appropriateness of the advice having regard to the investor’s personal objectives, financial situation and needs.

Any opinions expressed in this communication constitute our judgement at the time of issue and are subject to change. We believe that the information contained in this communication is correct and that any estimates, opinions, conclusions or recommendations are reasonably held or made as at the time of compilation. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, the accuracy of that information is not guaranteed in any way.

Any projection or other forward-looking statement (Projection) in this document is provided for information purposes only. No representation is made as to the accuracy or reasonableness of any such Projection or that it will be met. Actual events may vary materially.

MLC Managed Accounts Strategies are available via investment platforms. Please refer to the MLC Asset Management website (www.mlcam.com.au) for a full list of platform availability. You should obtain a Product Disclosure Statement relating to the investment platform and consider it before making any decision about whether to acquire or continue to hold interests in the Model Portfolios.

MLCAM may use the services of NAB Group companies where it makes good business sense to do so and will benefit customers. Amounts paid for these services are always negotiated on an arm’s length basis.