Scaling your advice business with managed accounts

What are they?

Choosing a managed portfolio off the BT Panorama menu is an efficient way to outsource investment management whilst also offering clients all the benefits of a managed account structure.

You can access more than 170 different portfolios across a wide range of investment styles and asset classes. These ‘off-the-shelf’ products are offered by a variety of investment managers who are monitored by BT.

How do they work?

Investors buy into a managed investment scheme issued by an RE through a PDS. Importantly you and your clients have visibility of the underlying investments purchased within the portfolio – unlike a managed fund.

The manager of the portfolio makes all the asset allocation and investment decisions, with the portfolio rebalancing automatically. The ability to customise the portfolios is limited, however the adviser may be able to set up some exclusions, for example, “do not hold” a specific listed security due to ESG considerations.

Which business structure do they suit?

Practices who want to completely outsource investment management and make the most of the efficiencies offered by the centralisation of processes.

This option is also suited for clients that don’t require a lot of personalisation in their strategy. 

You may be able to apply to white label an existing managed portfolio suite with your own firm name and brand, subject to the agreement of the investment manager, though this can take a little more time to build and implement than using off-the-shelf options. Talk to your BT BDM to learn more. 

What are they?

They work just like choosing a managed portfolio off the BT Panorama menu except the investment portfolios are created by the dealer group or licensee, who often partners with an investment manager or asset consultant to build out their portfolio offerings. These are then made available only to practices or advisers within that specific dealer group through BT Panorama.

How do they work?

The dealer group or licensee works with an asset consultant to develop model portfolios in line with their investment philosophy. These are then provided to BT who conducts due diligence on the portfolios, and packages them into a product with a PDS that the dealer group’s advisers can access and use through BT Panorama.

Which business structure do they suit?

This managed account structure may suit groups who want more of a say in the types of investment portfolios they can offer their clients and are willing to dedicate the time and responsibility to research, construct and monitor the portfolio, but with the support of BT behind the scenes.

What are they?

While not strictly a managed account, these are a range of portfolio management tools available on BT Panorama that allow an adviser to build their own model portfolios and roll them out across specific client segments. Advisers have the opportunity to centralise some of the management of client portfolios and reduce the compliance burden by leveraging BT’s digital capability to provide advice and manage client consent. On BT Panorama these tools are known as model portfolios.

How do they work?

The adviser can build model portfolios consisting of cash, listed securities (including ETFs), managed funds and managed portfolios and link to one or more clients. Advisers then leverage digital ROAs and consent to efficiently manage portfolio updates across their client base. Model portfolios are generally non-discretionary – you cannot update asset allocations on mass without individual client consent.

Which business structure do they suit?

This tool works well to streamline processes for small amounts of clients with the same risk profiles and goals, as bulk portfolio rebalancing is not currently available through this option. There is no limit to how many models you can set up, and the models can create operational efficiencies, reduce risk when rebalancing orders, and provide the needed transparency and visibility of your clients’ investments.

What are they?

• Tailored portfolios provide portfolio management tools designed specifically for your business to provide an MDA Service.
• You can partner with your licensee or investment consultant to support you in the design of your portfolios.
• Then, engage with an MDA operator (either your licensee or a third party) who will build out the investment offering, manage asset allocation and investment selection, perform the ongoing rebalance execution and ongoing compliance and management of client portfolios in line with their MDA agreement.
• BT Panorama provides the portfolio construction and management tools to your preferred MDA operator to deliver a bespoke portfolio solution for your clients. 

Licensee vs third party MDA

There are two tailored portfolio options supported on BT Panorama: 

• If your licensee has an MDA licence then you can work directly with them to design and implement your tailored portfolio solution
• If your licensee doesn’t have an MDA licence, you’ll need to engage a third party provider (with the support of your licensee) who has an MDA licence, and define your expectations of the solution. 

How do they work?

The adviser group works directly with an asset consultant/MDA provider to design bespoke investment portfolios, and engages them to manage all portfolio construction, administration, compliance and reporting. The MDA provider has the ability to charge a portfolio management fee for their MDA services, which is separately agreed with each client (and adviser) within their MDA agreement.

Some MDA providers undertake both investment consulting and management the portfolios on the adviser’s behalf. BT is not responsible for the administration or compliance of these portfolios or the MDA service; BT Panorama simply holds the assets and provides the digital tools for implementation by the MDA provider.

Which business structure do they suit?

Tailored portfolios may suit practices without an MDA licence who want the full range of portfolio management tools to create and monitor their portfolios in a customisable solution, and who prefer to outsource the administration and management. They may especially work well for practices focused on HNW clients who require personalised portfolio rebalancing.