How managed accounts empower advisers to stand out and scale up

As financial advice evolves, managed accounts are no longer just a convenience; they are a competitive edge.

Managed accounts, particularly custom solutions, enable practices to deliver more personalised advice, maintain control over their investment philosophy, and differentiate themselves in the market.

The efficiency benefits of managed accounts are significant. Zenith's Unlocking Advice Efficiencies in 2025 report - that surveyed 460 financial advisers about the challenges and opportunities they face and the role that managed accounts can play to help them better meet client needs - found that 92% of them thought managed accounts allowed them to save time on administration.

The report found that advisers are comfortable outsourcing investment management to managed account experts if it means they can spend more time supporting their clients, achieving efficiencies for their practices and differentiating their services.

But that is not the only benefit they highlighted.

The advisers reported significant efficiency gains from adopting managed accounts, with 44% indicating time savings in administrative and research tasks of up to 25%.

Notably, they agreed that managed accounts offered the greatest time reductions, particularly for practices seeking higher operational efficiency.

The report found that 50% of advisers cite investment philosophy as a primary reason for provider selection. With 53% of custom managed account users , reflecting the need for tailored strategies to reflect a practices' investment philosophy

As advice practices mature and grow, they typically seek more tailored solutions rather than solely relying on off-the-shelf options. Custom managed accounts let advisers to build portfolios tailored to individual client needs, including specific asset preferences and ESG considerations.

Overwhelmingly, advisers said the greater efficiencies offered by managed accounts allowed them to devote more time to differentiate their services and provide client-centric advice, leading to better outcomes for investors.

By integrating managed accounts into their service offering financial advisers says they can deliver a transparent, customised, and professionally managed investment experience, that offers flexibility and personalisation without the risk of sacrificing returns. These obvious benefits for clients lead to greater satisfaction and loyalty.

In recent times, the migration of legacy portfolios, cost concerns, and client preferences for bespoke investments have hindered the broader adoption of managed accounts, but that is gradually changing. While off-the-shelf products dominate due to simplicity and cost-effectiveness, custom solutions are becoming more popular as practices look to stand out.

With 84% of practices saying they expect growth over the next two to five years, there is clear optimism about the future of the financial advice industry.

Managed account providers can help prompt further growth for advice practices by offering technology and tools that streamline investment operations, providing scalable investment management including portfolio creation, rebalancing, performance reporting and compliance oversight, and enabling advisers to maintain consistent investment solutions for clients, even when transitioning between licensees.

It offers a level of service differentiation, and administrative efficiency, that hasn't been available in the past.

Zenith's Unlocking Advice Efficiencies in 2025 report also found there was a shift toward tailored solutions for more complex investor requirements.

By offering personalised portfolios, practices can develop stronger client relationships by addressing clients' unique goals and preferences. It can help advisers draw new audiences - for instance to help cater to younger clients by providing tailored investment models like impact investing, they can provide flexible account structures for family wealth management, and can leveraging digital engagement tools for real-time transparency.

Over coming decades, billions of dollars will be passed down from older to younger generations, and advisers must cater to new client expectations and needs, including tech-savvy, socially conscious investors from different demographics. Managed accounts can assist by offering tailored investment models that align with younger clients' values, such as ESG or impact investing.

But to be successful managed account solutions need to be purpose-built to help advisers grow and streamline their businesses. Managed accounts will become a key tool for advisers in 2025-driving greater efficiency, scale and differentiation for advice practices, while also delivering increased transparency for investors.