Most financial advisors identify flexibility to choose asset allocations as important when deciding which managed account programs to use, according to a new report.
Cerulli Associates, Boston, discloses this finding in a report, “The Cerulli Edge, Managed Accounts Edition.” The report explores program dynamics of managed account programs and details full-service, third-party vendor relations. The survey also provides a quantitative update on assets and growth rates, program sponsors, third-party vendors, asset managers and cash flows.
More than six in ten (61 percent) financial advisors flag flexibility to choose asset allocations as important when deciding on a managed account program, the report states. Less important factors identified by the advisors include:
57 percent—Advisor flexibility to choose investments.
49 percent—Investment recommendations/models from the platform provider.
47 percent—Flexible pricing.
47 percent—Client assets.
43 percent—Manager availability.
24 percent—Vehicle availability.
19 percent—Revenue to advisor.