Managed accounts a solution for many investors

Investors want help with investments, but sometimes they look beyond financial advisers.
MAY 25, 2017

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.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.