Leading advisory firms launch new MDA solution

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Mark McLennan

Mark McLennan

Specialist managed discretionary account operator, managedaccounts.com.au will soar past the $1 billion in assets under administration mark after launching services with two of Australia’s largest boutique financial advisory firms.

Sydney-based Affinity Wealth Services and Melbourne-based Redgum Wealth Group have both integrated the managedaccounts.com.au MDA solution into their businesses.

Affinity Wealth Services, which spun out of AMP-owned dealer Hillross in 2009, signed with managedaccounts.com.au in January and will transition around $180 million into the new MDA solution over the next 12-18 months.

The firm has approximately $350 million in assets under advice and employs 24 staff across its wealth management, financial planning and accounting businesses.

Affinity Wealth Services principal, Keith Jones said the firm’s new MDA solution allowed it to focus on the delivery of quality service and advice without being distracted by back office administration.

“We looked at a number of different administration systems as well as virtual platforms and we chose the managedaccounts.com.au structure because it suits how we manage money and delivers greater transparency, accuracy and flexibility,” he said.

Redgum Wealth Group is also currently rolling out the managedaccounts.com.au MDA service to its 200 clients.

Principal Mark McLennan said he expected the new service to reduce the group’s administration workload and allow for greater time and resources to be spent on enhancing its investment research and portfolio management capabilities.

“We started to experience capacity constraints because previously every individual client portfolio has to be handled separately,” he said. “With this system, we’re more efficient and productive. We can still individualise client portfolios and the business can continue growing at a steady pace.”

Redgum employs nine staff including four advisers and has over $200 million in assets under advice.

David Heather, CEO of managedaccounts.com.au said the group had experienced strong growth in the last 12 months, signing a number of independently-owned boutique groups including GPS Wealth, Affinity Wealth Services and Redgum Wealth, in addition to being in advanced discussions with several quality businesses.

“The arrangements with Affinity and Redgum are significant in that both firms have previously administered client portfolios off platform but have seen the need to migrate to a MDA structure for advice efficiency as well as administration efficiency. Any advice business contemplating providing equities advice on a large scale should take the time to look at the range of options available.”

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