SMA usage spikes among SMSF professionals
Separately managed accounts are gaining popularity among SMSF-focused firms, with 20 per cent of clients’ funds now allocated to SMAs, according to TRIA research.
Research from Tria’s Australian Adviser Insights Programme shows advisers, whose practices comprise 50 per cent or more SMSF clients, allocate an average 20 per cent of their clients’ funds under assets to SMAs.
Non-SMSF focused advisers, on the other hand, only allocate 3 per cent of funds under management on average, using the same approach.
The use of managed accounts has also translated to a shift by advisers towards increased platform use.
“SMSF-focused advisers using platforms with established managed accounts functionality were much more likely to be increasing their on-platform FUA and much less likely to be moving clients off-platform,” Tria Partners said.
For those who intended to decrease platform use, 80 per cent were using lead platforms with no managed accounts functionality.
“We aren’t suggesting that this is the only factor influencing SMSF-focused advisers’ choice of administering FUA on- or off-platform, but certainly the correlation suggests that it is a key consideration,” Tria Partners said.
The analysis demonstrates the importance of getting superannuation right when a firm is looking at research and data about their target market and using it to make decisions, the company said.
“It’s important to look beyond the ‘averages’ to understand in detail what they want and value.”