Transforming your practice with Lonsec Managed Accounts

At Lonsec, we understand that choosing to transform your practice with managed accounts is a big decision to make, and one that you may not feel able to tackle on your own. That is why we have a dedicated team with a proven process to help you every step of the way.

You may have already started transforming your practice but need some extra help or you are at the beginning of your journey. Wherever you are in this process, we are here to help you at a pace that is appropriate for you and your clients.

Learn more about Managed Accounts

Why transform your practice?

The last eight years has seen adviser use of managed accounts double* and it is easy to see why – advisers using managed accounts have 18% more clients than those using a traditional model, they save on average 13 hours per week by outsourcing to a professional portfolio manager and have more frequent and longer contact with their clients than advisers using a traditional model.

Freeing up time by outsourcing the day-to-day portfolio management to experienced Lonsec investment professionals allows you to concentrate on providing the high value, strategic advice to your clients that fosters stronger and more profitable client relationships.
* Source: SSGA, Investment Trends, Colonial First State; + 42% of advisers using managed accounts interact with clients 10 times per year vs 30% of advisers who follow a traditional model

The Lonsec process

Our process isn’t just about moving your clients to managed accounts – it is a holistic approach that looks at your entire practice and guides you through every stage. From helping you articulate your client value proposition and investment philosophy to forecasting and tracking your practice goals and engaging with staff and clients throughout the entire process. And if you don’t have an investment philosophy, we will help you create one so that you can take full advantage of the cost savings and operational efficiencies that come from having a consistent investment approach.

Having an agreed investment philosophy ensures that there is a consistent and rigorous process to every investment decision. It creates a transparent uniformity that can ensure efficiency in business processes as well as powerfully strengthen your client value proposition.

The 10 stages of the transition process

Our process is broken into 10 manageable stages, each building on the one before. Partnering with Lonsec will significantly reduce the time it takes to transform you practice than if you were to do it independently. We are committed to helping you create more profitable and rewarding client relationships and so we will help you through every stage at a speed that is appropriate for your practice and clients.

1. Articulating your client value proposition

Using managed accounts gives you the opportunity to clarify and define what you do well and confidently communicate this to your clients.

2. Assisting with creating or refining your investment philosophy

Having a consistent investment approach across your business enables you to take full advantage of the cost savings and operational efficiencies.

3. Identifying which clients may be appropriate for a managed account solution

Managed accounts may not be appropriate for all your clients, so we will work with you to identify which clients are suitable for managed accounts and the best order in which to transition them.

4. Assisting in communicating the practice transformation story

We will help you clarify your broader story, especially why you are transitioning to managed accounts. We will then provide the narrative so you can communicate this to the rest of your practice and your clients.

5. Ensuring that staff are engaged and confident in the process and the benefits of change

Each step of the transformation journey has a clear focus and process. We identify and support all staff required to execute on each step.

6. Creating a project plan which aligns all stakeholders in the business

It is important that all your staff are on board with the change to managed accounts. We can help you in understanding and managing your practice capacity so you can communicate the benefits of transforming your practice with your team.

7. Forecasting and tracking practice goals in the transition to managed accounts

We focus the process at the individual client level so you can be clear and deliberate in your actions.

8. Providing collateral for client communication and education

Effective communication throughout the process to ensure your clients are informed, confident and clear on the value managed accounts will provide to them.

9. Assisting with the preparation and execution of advice

We provide practical support in the execution of the advice, including providing SOA text, to make the process as easy as possible for you and your team.

10. Proactive review of your transformation plan to ensure your practice goals are realised

Transforming your practice won’t be a linear process. We will regularly review the plan with you to adjust as needed to ensure that your practice goals are realised as efficiently as possible.

Expected outcomes

We have outlined the potential profit per principal and profit uplift that can be made by transforming your practice using Lonsec Managed Accounts. These are based on averages from across the industry so will be different for your own practice. As part of the transformation process, we calculate personalised profit potential so you can see the potential benefit of using Lonsec Managed Accounts across you practice.

Key Productivity Measure	Profit per principal	Profit uplift
Length of time using managed accounts
Do not use managed accounts	$252,573	–
Less than 1 year	$228,128	-10%
Between 1 – 3 years	$331,060	+31%
More than 3 years	$337,298	+34%
Proportion of clients invested in managed accounts
Do not use managed accounts	$252,573	–
Less than 10%	$276,359	+9%
Between 51% – 75%	$408, 359	+62%
More than 75%	$467,884	+85%

Get in touch

Our team

The Lonsec Practice Transformation team has over 50 years combined experience in running and managing advice practices, so understand that your clients are at the heart of your business. The team can provide objectivity to your practice challenges and leverage insights from other practices who have transformed their businesses. We see this solution as a true partnership, so we will practically support you in ensuring your clients are in a better position by transitioning to managed accounts and help you communicate this to your clients and team, all while meeting your best interest duty.

Want to find out more?

Get in touch today to find out how we can partner with you to create better investment outcomes for your clients.

Call us on 1300 826 395 or email info@lonsec.com.au.

Contact us

Our team is available to discuss how we can partner with you to empower your investment decisions.

Lonsec Sydney
Level 39, 25 Martin Place, Sydney NSW 2000

Lonsec Melbourne
Level 33, 120 Collins Street, Melbourne VIC 3000

Lonsec Adelaide
Suite 3, Level 2, 12 Pirie Street, Adelaide SA 5000

Phone: 1300 826 395 | Email: info@lonsec.com.au

Important Documents

Important information: Any express or implied rating or advice is limited to general advice, it doesn’t consider any personal needs, goals or objectives. Before making any decision about financial products, consider whether it is personally appropriate for you in light of your personal circumstances. Obtain and consider the Product Disclosure Statement for each financial product and seek professional personal advice before making any decisions regarding a financial product.