Leveraging institutional pedigree to democratise managed accounts

MLC Asset Management’s (MLC AM’s) “deliberate” move to apply its long-standing track record and “institutional horsepower” to its suite of managed account strategies has delivered it an inaugural award win.

Receiving the honours in the newly introduced Managed Accounts Manager category at the Financial Newswire/SQM Research Fund Manager of the Year Awards 2024 has been four years in the making for the managed accounts range, capitalising on MLC AM’s almost four-decades-long history of managing multi-asset portfolios.

Portfolio Manager, Anthony Golowenko, said he was “thrilled” to have the recognition and while the award win is the “culmination of considerable work and effort from a team approach”, it is also “another page in what’s a longer story”.

“We’ve been very deliberate in crafting [the managed accounts products] to sit alongside our existing MultiSeries, Horizon and Inflation ranges,” Golowenko told Financial Newswire.

“We’re able to leverage the size and scale of the multi-asset investment team and provide efficiencies to our clients. Bringing in strategic, quality partnerships is also something we’ve done over this journey and clients are now starting to see the material and meaningful benefits.

“Our strategies are about delivering diversity and resilience, and that’s incorporated in our portfolio construction. Purposeful portfolio design and crafting really sets us apart as an asset manager, and not only within managed accounts, but more broadly as a multi-asset class specialist.”

MLC AM’s unique approach to managed accounts leverages the knowledge and expertise of its ongoing collaborations with high-quality managers, delivering a variety of consistent and robust outcomes that transcend the boundaries of traditional asset classes.

And with the popularity of managed accounts undeniably skyrocketing in recent years, fund managers have capitalised on the entrance of the traditionally high-net-worth-exclusive product into the retail market. Termed as the “democratisation” of managed accounts, MLC AM is one of many to ride the wave.

“There are two key drivers [of managed accounts’ meteoric rise]. The first is democratisation. We’re bringing institutional grade, multi-asset solutions to market and wide accessibility into platforms,” Golowenko said.

“The second is transparency. We need to be clear on underlying components, on our decisions, on articulating them in a client friendly way, and amplifying that through webinars, short videos or regular communication.

“Putting these two key things together brings efficiencies to advisers. We’re very deliberate in how we construct our portfolios with purpose, and how we elaborate on our decisions. It’s an alignment of values, investment beliefs and philosophy, but having open, clear and regular communication.

“With our managed account solutions, we do need to do some things a little different like our communication style, but ultimately, it’s all about simplicity. That resonates strongly with advisers who are partnering with us.”

With this ‘democratisation’ of managed accounts has come a more ‘intimate’ connection between fund manager, investment outcome and end client, who Golowenko says are just people looking to build wealth or cement their retirement from the ground-up – not the typical investor this product has historically catered for.

“The institutional investment style or voice, say 10 years ago, had a high level of detail and was written in the way an asset consultant or gatekeeper might consume.

“We recognise that we’re really speaking to the end client now. Providing details such as ‘What’s the rationale for a change? Why are you [making that change] now?’ is important. Every asset allocation decision is accompanied by a trade note that is then referenced in our webinars and other communication with clients in clear terms, as such that our voice to client and adviser is open and transparent.

“We want our partnerships with advisers and their end clients to be a multi-year journey. Where we’re imparting our asset allocation views and sub-asset class changes throughout portfolios, we want to be clear on the drivers of outcomes and whether they were successful or not.

“We’re open about that. ‘Here was our rationale for doing so, and here’s what we’re doing in our portfolio.’ Why wouldn’t we communicate these things to help our end clients understand what we’re doing and build trust in what we do?

“We have a reasoning; we have a process. But ultimately, we’re thinking about what it means for end investors and their retirement journey. We want to help them secure that and do something valuable within this industry and within our careers, for our clients.”

Golowenko confirmed that MLC AM’s award-winning managed accounts strategies are close to reaching $2.5 billion in funds under management (FUM) and are available on a wide variety of platforms, including Expand Essential, Expand Extra, BT Panorama, CFS FirstChoice, AMP North, HUB24, Macquarie Wrap, Glow Wrap, Rhythm, Voyage and Netwealth.