Financial services offered by qualified investment managers or financial institutions to monitor and fund management of an individual’s or institutional investor’s investment portfolio are managed account services (MAS). These services are designed to provide a customised and individualised approach to wealth management by matching investment strategies to the client’s risk tolerance and financial objectives.
A discretionary investment management arrangement, wherein the designated manager has the power to make investment decisions on behalf of the client, is commonly associated with MAS. This can involve rebalancing a portfolio, allocating assets, and purchasing and selling securities.
The manager manages the daily investment activity while the client’s assets remain in their name, giving transparency and ownership. The experience of seasoned experts who employ research and analysis to make well-informed investing decisions is advantageous to clients. To help clients diversify their portfolios, MAS providers frequently provide various investment options, including stocks, fixed-income, and alternative investments.
Advantages of managed account services
The following are the various advantages of managed account services:
- Having access to professional investment management skills is one of the main advantages of MAS. Skilled portfolio managers evaluate individual stocks, economic factors, and market trends to make well-informed judgments that maximise portfolio performance.
- MAS providers customise fund management and investment strategies to meet clients’ financial objectives, risk tolerance, and personal preferences. This personalised approach enables a more customised investment experience than standardised investment products.
- Clients own their assets in MAS even though they assign specialists the task of making investment decisions on their behalf. Thanks to this transparency, clients can track their portfolios’ performance and learn more about the investment choices being made on their behalf.
- MAS providers frequently use risk management techniques to safeguard their clients’ capital. This could entail hedging strategies, stop-loss levels, and ongoing risk profile monitoring of the portfolio to match the client’s risk tolerance.
- Investors frequently need more skills, time, and motivation to manage their portfolios actively. By relieving clients of the daily hassles involved in keeping an eye on and modifying their assets, MAS frees them up to concentrate on other areas of their lives or enterprises.
- Consolidated reporting, which gives clients a thorough picture of their investment holdings, performance, and transactions, is a standard feature of MAS platforms. Customers will find it easier to evaluate the overall health of their investment portfolios due to the simplification of financial tracking and reporting.
- Although costs may be associated with using MAS services, these costs can be justified by the possibility of professional management returns exceeding these costs. Additionally, clients may pay less for transactions due to the economies of scale attained by pooling assets under management.
- Individual investors and smaller institutions can now receive professional investment management thanks to MAS. Professional wealth management is now accessible to a more significant portion of the population thanks to the democratisation of financial services.
- Alternative investments, fixed income, and stocks are just a few of the many investment possibilities portfolio managers inside MAS frequently provide. By distributing risk across several asset classes, diversification can lessen the adverse effects of underperforming assets on the portfolio as a whole.
Conclusion
Managed Account Services gives customers a customised approach to investment management by offering specialised knowledge and tailored plans. These services emphasise risk management, customisation, and transparency to optimise portfolio performance. Managed Account Services appeals to wealth management because it allows investors to take advantage of professional financial management benefits with a more hands-off attitude.
