Managed Accounts are efficient investment structures for investors looking to get exposure to professional managers whilst still enjoying the benefits of direct ownership (please also see "Benefits of Managed Accounts").

The key differences between Managed Funds, Stockbroking and Managed Accounts:

A Service Solution

Dealers and advisers are able to offer a customisable solution to suit their clients' needs. They are not locked-in with the rigid offerings of a typical managed fund or wrap that cannot offer individualised tax optimisation.

Advisers are then empowered to offer superior value added service to their clients with technology driven customisation on an individual client basis. 

A Growth and Profitability Solution

Some financial planners and dealer groups have investment management expertise. FPWS gives the adviser/ dealer group the opportunity to offer their own portfolios (subject to due diligence) to their clients and secure a fee for this investment management capability.

A Compliance Solution

For the Licensee:

AFSL Licensees have a responsibility for the advice given to clients and to ensure products recommended have a 'reasonable basis'. Usually, Licensees have approved product lists that have been researched either internally or by an external service provider. There is a wide range of methods that Licensees use to create a comparable APL for direct securities but in many cases, the Licensee does not have full visibility over the equity investments of clients.

Separately Managed Accounts offer visibility and control for AFSL licensees over the direct investments. Mandates can be made to be pre-approved by both the Dealer Group and the Responsible Entity of the product with pre-determined constraints on portfolios to ensure rigorous processes are in place and to align the investment mandate with that disclosed to the client.

You can invest in an appropriate model portfolio (or a combination of models) that suits you or your clients' circumstances and risk profiles. FPWS provides the framework to provide consolidated reporting for all of your investment holdings. FPWS will also offer you the ability of managing all of your investments using a single administration and reporting system.

Benefits

• Typically lower fees for the management and administration of portfolios
• Tax management capabilities, allowing optimal decision making in the context of individual clients' objectives regarding tax liabilities.
• A tax engine designed to capture or produce all the relevant information for the satisfactory preparation of tax returns.