For years, the managed account discussion has been dominated by two major themes - efficiency and compliance. And while the time savings that free advisers from the grind of administration, rebalancing, and reporting are important, this focus sells the true potential of managed accounts short.
There is no doubt the hours saved are of huge benefit, but the real value is in how those hours are reinvested. And research from Zenith Investment Partners reveals a stark divide. While 92 per cent of advisers confirm managed accounts save them crucial time on administrative tasks, it’s what they do with that time that separates the growing firms from those that are more stagnant.
High-growth practices are strategically redeploying this time saving into the areas that matter most: business development, marketing, deepening client relationships, and pursuing merger and acquisition (M&A) opportunities. This trend is addressing a challenge facing the financial advice industry. Namely, an ability to dedicate sufficient time to key value-add activities.
According to Zenith’s Unlocking Advice Efficiencies in 2025 report, marketing and M&A are areas where advisers express the highest levels of dissatisfaction. Less than half believe sufficient focus is dedicated to marketing, and a mere 31 per cent are happy with their practice’s M&A capabilities (see chart below).
Source: Zenith’s Unlocking Advice Efficiencies in 2025 report
This problem is most acute for boutique firms - they lack the resources of larger licensees while still facing the same pressure to grow, differentiate their brand, and acquire new clients. Without a dedicated marketing function, they risk being left behind.
Advisers know business development is crucial, but any spare time is often caught up in portfolio administration. The result? Stalled growth, weaker referral networks, and missed opportunities. Managed accounts are the first step to unlocking that expertise.
By handing over the heavy lifting of portfolio construction, management, trading, rebalancing, compliance and reporting to a specialist provider, advisers regain their most valuable asset - time.
The data demonstrates that successful firms have been able to capitalise on the additional time that managed accounts free up – and have used it productively. A significant 68 per cent of high-growth practices use managed accounts, and are allocating a greater proportion of their FUM to them, compared to just 47 per cent of boutique firms.
When an adviser shifts their focus from charting performance based on stated goals, to more deeply understanding a client’s situation now and their future needs and goals, the relationship with that client transforms. The adviser’s renewed focus on strategic planning makes the service more personalised and meaningful.
For boutique practices, it’s even more important. Zenith’s research shows that smaller firms feel the impact of scaling pressures most acutely (72 per cent perceived impact), yet are the least prepared to address them (37 per cent reporting readiness).
With 84 per cent of practices saying they are expecting growth over the next two to five years, there is clear optimism about the future of the industry. However, there is also a critical readiness gap - many practices remain unprepared to fully leverage the benefits of scalable advice models.
While larger and high-growth practices lead the way in managed account adoption, boutique and conservative practices face hurdles with implementation and strategic alignment.
But partnering with a managed accounts provider levels the playing field. It allows a smaller firm to leverage an institutional-grade investment infrastructure without the overheads, freeing them to compete on strategy and relationships, not just on portfolio management.
The future of advice will be won by those who combine healthy, efficient investment solutions with a relentless focus on growth and client connection. Managed accounts are the critical foundation that makes this possible.
In 2025 and beyond, the advisers who thrive will be those who see managed accounts not just as a vehicle for investments, but as the most powerful partner they have for building an enduring, scalable business.
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.
