During a netwealth educational webinar on August 11 2016, Rainmaker Group's Director of Research and Compliance, Alex Dunnin shared key findings from their latest research on managed accounts and what it means for financial advisers.

1. Managed
accounts with
FinancialStandard
Netwealth educational webinar series
Presented by
Alex Dunnin, Executive Diretor, Research & Compliance
Rainmaker Group
August 2016

2. Housekeeping
• This webinar is being recorded
Slides will be sent to you after the webinar
• Enter your questions in the chat
We will get to them at the end of the webinar
• Posting to social?
Tweet #netwealthinvest or @netwealthInvest
• CPD points
A questionnaire will be sent after the webinar

3. Meet today's speaker
Alex Dunnin
Executive Director, Research & Compliance
Rainmaker Group

4. Alex Dunnin
Director of Research & Compliance
Rainmaker Information
Managed Accounts.
Better client conversations
Better financial outcomes
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

5. Research - 200 adviser
responses + market scan
Media review - News reports on how
financial advisers use Managed Accounts
Latest news and industry developments on
Managed Accounts in the past 12-24 mths
Growth drivers Influence of SMSFsNext big wave
WHAT WE WILL
COVER TODAY
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

6. WHY MANAGED
ACCOUNTS MATTER
Do you expect they
will become more
or less popular over
the next 3 years?
Answer: YES
Source: www.rainmaker.com.au
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

7. BIGGEST INHIBITOR?
ACCESS, AFSLs AND APLs
If you do NOT use
Managed Accounts,
why not?
Source: www.rainmaker.com.au
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

8. THEY ARE
MAJOR DISRUPTORS
What impact do you
expect the use of
Managed Accounts
will have on your
clients’ use of regular
Platforms and
Managed Funds?
Source: www.rainmaker.com.au
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

9. NOT JUST MAs,
ETFs TOO
What impact do
you think ETFs
will have on ...?
2016 ETF survey of advisers
conducted by Financial
Standard July 2016
Source: www.rainmaker.com.au
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

10. POSITIVE FEE
PROPOSITION
Source: www.rainmaker.com.au
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

11. ENTRY LEVEL
FLEXIBILITY
What do you
consider the
appropriate
investment entry
point for each MA
investment product
type?
Source: www.rainmaker.com.au
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

12. MAs GOOD
FOR ADVISERS TOO
What level of
impact do you
believe providing a
Managed Account
offering adds to the
commercial value of
your practice?
Source: www.rainmaker.com.au
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

13. BUT COLD WAR
NOT YET OVER
Almost all major
wealth management
groups offer Managed
Accounts which means
the majority of advisers
have access to them.
But only recently have
Managed Accounts
transitioned from being
defensive ploys to being
an actively promoted
solution set.
Threshold issue is
always to what extent
do groups defend their
legacy business and at
what opportunity cost?
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

14. MAs - WHY ADVISERS
LIKE THEM
What do you think
are the main benefits
of using MAs?
Source: www.rainmaker.com.au
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

15. WHICH EXPLAINS THIS
SELECTION CRITERIA
What criteria did you
use to select your MA?
Source: www.rainmaker.com.au
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

16. SO BEWARE
OF NOISE
MAs with most
managed options
Source: www.rainmaker.com.au
A FB GC H KD I LE J M
Managed Account Platforms
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

17. BUT WHAT
DO ADVISERS SAY?
Based on a focus
group discussion with
six financial advisers
following the 2015 survey
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

18. PUSH OF
A BUTTON
“We find there’s a lot less administration running Managed Accounts. A lot less. I now don’t
do heaps of client reviews. Clients can log on 24/7, look at everything, look at every stance
and look at all the research. And if a client does have an interview, I’ve got all the information
there, tax, everything I want, and I just hit the button and scroll up, so as soon as they walk
in they’ve got this. Back in the old days when you were trying to work out all the different
managed funds, what the unit prices were, what was in them, what were the tax outcomes –
none of that’s required anymore. So we find it’s very good. ”
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

19. IN SUMMARY
Managed Accounts
are simply the next
evolutionary step in
the journey of what a
platform is and where
they are going.
Ignoring them is like
FTA television stations
or even your children’s
school trying to ignore
smart mobile devices.
Sure they can do it for
a while but before too
long no one will worry
about them too much.
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

20. BEHIND THE
SCENES
What’s in the news? ‘Managed Accounts’
vs ‘SMSFs’ vs ‘ETFs’
Who’s making it?
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

21. NEWS COVERAGE
DOUBLES
Financial Standard
news articles with the
phrase “Managed
Accounts”
(Excluding FS Managed
Accounts magazine content)
Source: www.rainmaker.com.au
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

22. TYPES OF ARTICLES
• Mergers and acquisitions
• Product launches
• White labelling of MA products
• New entrants
• Advisers using MAs
• MA providers broadening their
service offerings
• MA case studies
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

23. IN THE ARCHIVE
• Major banks move
to offer MA solutions
• Listed MA groups post
stronger numbers
• More advisers transitioning
clients to MAs
• Redefinition of what is a platform
• Technology solution providers
versus the wealth brands
• netwealth launching their
own MA suite
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

24. A NEW MARKET TO RIVAL WRAPS
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

25. GROWTH
DRIVERS
• Demographics:
Millenials, Baby Boomers
• Financial advisers (Around 20,000)
• Accountants entering market
(Around 400,000)
• #Get80
(80-90% of Australia unadvised)
• Product disruptors
– Betterment, Stockspot, Acorns, etc
– ETF evolution, SMSFs
– A way to package robo-advice
1
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

26. GROWTH
DRIVERS
• Industry associations now getting
on board
• Regulation
• Global investing
• Business valuation and
sustainability
2
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

27. SMSFs
A NATURAL PARTNERSHIP
What proportion
of your clients
have a SMSF?
Source: www.rainmaker.com.au
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

28. SMSFs:
STARTING YOUNGER
SMSF age
membership :
New versus the old,
2015-16
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

29. AND WHERE
THEY INVEST
SMSF asset
allocation by fund
size 2014
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

30. Better client
conversations.
Case studies from
FS Managed Accounts magazine
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

31. CASE STUDY:
SPLIT THE ATOM
“We have a strong conviction that advisers, generally, are great
at giving advice, but really poor at delivering investment advice.
We really wanted to split the atom so that by taking out all of
the investment side of the work, we have more time to create a
more sustainable value proposition to our clients.”
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

32. CASE STUDY:
SURVIVE THE SQUEEZE
“We’re able to react quickly
when circumstances change
and we can implement
changes to the whole
portfolio in one day for all our
clients if necessary.”
While there’s no industry consensus
on what constitutes a fair price for
comprehensive advice, some are charging
more than 3%. Clients with between
$500,000 and $1 million under advice
should pay no more than 1.4 to 1.6% all up.
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

33. CASE STUDY:
THE CLIENT WINS
“Out of that $1.9 million she invested
with us, to date, she’s drawn out
$3.3 million including $500k to buy
an investment property. And after
drawing $3.3 million, the portfolio is
still worth $1.4 million not including
the property, so she’s going along
pretty well. (now looking for a
second property)”
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

34. FS MANAGED ACCOUNTS
MAGAZINE
• More comprehensive
coverage on MAs
• Annual adviser survey
and MA report
• A growing collection of
adviser case studies,
white papers and
technical articles on
the topic
Adviser case studies
Scaling your business
2015 Managed Accounts Survey
MAKING
ADVICE
COUNTMark Nagle, executive director,
Treysta Financial Life Management
Volume 02 Issue 01
Behavioural finance
and managed accounts
Simon Russell, BFA
Doctors embrace MDAs
Ravi Agarwal, MEDIQ Financial Services
Published byPublished by
Rating SMAs
Adviser case studies
Fixed income within MAs
TIMe To
advicePaul Crowne, Centric Wealth
Volume 01 Issue 01
Investment
selection and
portfolio rebalancing
Michael Heine, netwealth
Survive the squeeze
Ken Bloomfield, Financial Clarity
FS Managed Accounts COVER copy.indd 1 18/08/2014 12:39 pm
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

35. THE NEXT
BIG WAVE
• From $20bn to $60bn by 2020
• Robo advice and other tech trends
• Future of ETFs and SMSFs
• What’s happening in the US and
elsewhere
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

36. CONCLUSION
• The technology is coming
• MAs are multi-win for clients
AND advisers
– enable advisers to address fee
issues from position of leadership
and innovation (both functional and
in terms of investment flexibility)
– Investors gain more benefits
• Kodak moment or Uber moment?
We’ve only just begun…
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

37. www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000
7 September 2016
Grand Hyatt, Mayfair Ballroom, 123 Collins Street, Melbourne
8:00am - 4:00pm
Follow Financial Stand
REGISTRATIONS NOW OPENN

38. Questions.
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

39. Thank you.
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

40. CONTACTS
Alex Dunnin
Executive Director, Research Compliance
Phone: +61 2 8234 7508
Email: alex.dunnin@financialstandard.com.au
Mark Smith
Editor
Phone: +61 2 8234 7516
Email: mark.smith@financialstandard.com.au
Michelle Baltazar
Director of Media Publishing
Phone: +61 2 8234 7530
Email: michelle.baltazar@financialstandard.com.au
www.financialstandard.com.au
Level 7, 55 Clarence Street, Sydney, NSW 2000

41. Thank you
Disclaimer
This webinar and information has been prepared and issued by Netwealth Investments Limited (Netwealth),
ABN 85 090 569 109, AFSL 230975. It contains factual information and general financial product advice only
and has been prepared without taking into account the objectives, financial situation or needs of any
individual. The information provided is not intended to be a substitute for professional financial product
advice and you should determine its appropriateness having regard to you or your client’s particular
circumstances. The relevant disclosure document should be obtained from Netwealth and considered before
deciding whether to acquire, dispose of, or to continue to hold, an investment in any Netwealth product.
While all care has been taken in the preparation of this document (using sources believed to be reliable and
accurate), no person, including Netwealth, or any other member of the Netwealth group of companies,
accepts responsibility for any loss suffered by any person arising from reliance on this information.