A new report from Zenith Investment Partners reveals that 92 per cent of financial advisers save time on administrative tasks by using managed accounts, freeing up hours for client-focused work and leading to potentially improved investment outcomes for investors, says Steven Tang, head of portfolio solutions with Zenith Investment Partners.
Zenith’s “Unlocking Advice Efficiencies in 2025” report explores the challenges and opportunities financial advisers face and the role that managed accounts can play to help them provide more efficient, client-focused outcomes. Based on insights from 460 Australian financial advisers, the report uncovers key trends, challenges, and opportunities for the financial advice sector.
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 and achieving efficiencies for their practices.
“Advisers are sending a strong message through their adoption of managed accounts. Our report found strong overall satisfaction: 81 per cent of respondents report being satisfied or extremely satisfied with their managed account provider, indicating broad approval of service quality,” Mr Tang says.
“In addition, managed accounts are demonstrating their value to advice businesses, with 92 per cent of advisers reporting time savings in administrative tasks and 81 per cent expressing overall satisfaction. However, challenges exist to their broader adoption. The migration of legacy portfolios, cost considerations, and client preferences for bespoke solutions key barriers to the broader adoption of managed accounts in Australia.”
Scaling advice is seen as another critical challenge of using managed account, with a significant preparedness gap revealed across all practice sizes. Boutique practices being the least prepared (37 per cent readiness vs. 72 per cent perceived impact), the report found.
Still, advisers report significant efficiency gains from adopting managed accounts, with 44 per cent indicating time savings in administrative and research tasks of up to 25 per cent. Notably, custom or private label managed accounts offer the greatest time reductions, particularly for practices seeking higher operational efficiency.
“While larger and high-growth practices lead the way in managed account adoption, boutique and conservative practices face hurdles with implementation and strategic alignment,” Mr Tang says.
More generally, advisers rank investment philosophy, performance and fees as the top factors when selecting a managed account provider. Private label solutions are preferred for alignment with investment philosophy, while off-the shelf options attract cost-conscious advisers due to lower fees.
“The report found that 50 per cent of advisers cite investment philosophy as a primary reason for provider selection. This is particularly important for private label users (60 per cent) and custom managed account users (53 per cent), reflecting the need for tailored strategies to reflect a practices’ investment philosophy,” Mr Tang says.
Portfolio performance ranks as another key factor for 47 per cent of advisers in selecting a managed account provider. Off-the-shelf managed accounts lead in this category, with 51 per cent of users prioritising providers with a strong performance track record.
The report also found that fees are a top concern for 55 per cent of off-the-shelf users, compared to 27 per cent for custom managed accounts and 26 per cent for private label solutions, highlighting cost considerations in selection of both provider and managed account type.
“With 84 per cent of practices expecting growth over the next two to five years, there is clear optimism about the future of the financial advice industry,” Mr Tang says.
“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.”
Zenith is one of the first multi-asset managed account providers in Australia and has built significant expertise on the development and management of these investment structures.
“Our deep understanding of the Australian wealth industry means our managed account solutions are purpose-built to help advisers grow and streamline their businesses. This report highlights how, more broadly, managed accounts will become a key tool for advisers in 2025—driving greater efficiency and scale for advice practices, while also delivering increased transparency for investors,” Mr Tang says.
