Managed accounts a solution for many investors

Investors want help with investments, but sometimes they look beyond financial advisers

May 25, 2017 @ 12:33 pm

By InvestmentNews

+ Zoom

Whether offered by a financial adviser or a robo firm, if peace of mind is what a client is looking for, he or she should look no further than a managed account.

That suggestion is implied by the results of two recent surveys, one from online wealth manager Personal Capital, which emphasizes the shortcomings of non-fiduciary human advisers, and another from Fidelity, which touts the advantages of managed accounts whether offered by a traditional adviser or a robo counterpart.

The Personal Capital online survey of investors and non-investors found that 70% question the trustworthiness of financial professionals, with 32% believing that a financial adviser is likely to take advantage of a consumer. Of the 54% Americans who do not work with a financial adviser, almost half — 45% — said the reason is lack of trust.

Trust wasn't the issue in the Fidelity study, where 23% of those who have a managed account said they like the arrangement because they prefer having financial professionals — whether human or robo — tell them what to do.

For those who invest in robo managed accounts, Fidelity found that trust in the firm's brand strength (at 36%) was the third most important reason for "going digital" after ease of use (50%) and low cost (41%).

Among all managed account holders, 89% believe that using a managed account simplifies their investing, Fidelity said in a release.

Personal Capital said its survey was conducted March 6-8, 2017 among 2,178 U.S. adults ages 18 and older, among whom 1,301 have at least one investment account. Fidelity's online survey was conducted October 24-31, 2016 among a sample of 400 respondents ages 25 and older who have $5,000 or more in a managed account.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

How to redesign, rebrand and recast your practice

Redesigning and reshaping your practice is a tough pill to swallow for advisers. But what got you here won't get you there, says John Kozuch, a Chicago financial adviser.

Video Spotlight

The Search for Income

Sponsored by PGIM Investments

Recommended Video

Path to growth

Latest news & opinion

How does your advisory firm stack up?

Comparing a firm's pay to the competition can point out vast flaws.

10 signs your client is cheating on you

Sure signs that clients may be on the way out the door.

Morgan Stanley sees slower fee-based asset flows on fiduciary rule delay

Flows to advisory accounts, while still higher than the start of 2016, dropped off more than 20% from Q2 and were the lowest in a year.

How adviser salaries stack up to other jobs

Median compensation hovers just under $100,000 on the low end and reaches nearly $300,000 for bosses.

Finra ranking brokers in effort to crack down on industry's bad apples

All 634.403 reps have been ranked based on factors such as prior regulatory disclosures, disciplinary actions and employment history.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print