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

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

Featured video

INTV

Ron Carson: If you aren't growing you're dying

There are two group of advisers, according to Ron Carson: Those that are expanding and those that are just "hanging on." So, which group do you belong to?

Latest news & opinion

LPL rolls back recruiting policy aimed at driving more assets to its corporate RIA

LPL erases $50 million hurdle for new advisers to join so-called hybrid firms.

Don't be fooled by the numbers — the industry is in a dangerously vulnerable state

Last year's stock market gains helped advisers turn in solid growth in assets and revenue, but that growth could disappear in the next market downturn.

Divided we stand: How financial advisers view President Trump

InvestmentNews poll finds 49.2% approve of his performance, while 46.7% disapprove. How has that changed over the course of his presidency?

10 states with the most college student debt

Residents of these states have the most student debt when you consider their job opportunities.

Ex-Wells Fargo brokers sue for damages, claiming they lost business in wake of scandals

In a Finra arbitration complaint, two brokers allege that Wells Fargo's problems damaged their business.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print