New IFA deals to push MDA provider FUA to over $2B

Heather David

David Heather

Five boutique financial advisory firms have launched new managed discretionary account (MDA) services in partnership with Managed Accounts Holdings Limited (MGP), which will ultimately see the company’s funds under administration (FUA) surpass $2 billion.

Shine Financial Services, Array Financial Services, Mayneline Financial Services and Renouf & Partners Financial Planning, which are licensed by Cumulus Financial Group, and another Melbourne-based financial planning firm will collectively transition around $500 million from wrap platforms to new MDA services operated by MGP.

Damian Dunell, Cumulus director and Shine Financial Services principal, said the group was impressed by MGP’s ability to help them design, build and implement their own branded MDA service, tailored around Cumulus’ advice philosophy and client value proposition.

Cumulus’ MDA investment program and solution, branded Fore Invest, is managed in partnership with investment manager and stockbroker, Joseph Palmer & Sons.

“We’re already experiencing significant benefits but most importantly our clients can now enjoy direct ownership with the ability to look through their portfolios and access customised, professionally-managed diversified portfolios,” Dunell said.

“From an adviser’s perspective, portfolio management and administration is infinitely more efficient, allowing us to spend more time seeing clients and providing strategic advice rather than dealing with multiple platforms and getting bogged down in administration.”

According to David Heather, chief executive of Managed Accounts Holdings Limited, advisers are increasingly looking for a unique, non-conflicted solution that’s capable of supporting all managed investment structures including individually managed accounts, separately managed accounts and unified managed discretionary accounts.

“A growing number of licensees are discovering that traditional wrap platforms don’t deliver the level of customisation, flexibility and functionality that they require in order to provide the best portfolio outcome for their clients,” he said.

“Many want a comprehensive solution that allows them to build bespoke investment management solutions which take into account their clients’ individual circumstances and objectives while providing business stakeholders with an efficient outcome through all parts of the value chain.”

The addition of these quality advisory firms caps off a stellar year for MGP with a strong pipeline of new opportunities heading into 2016, Mr Heather said.

MGP has also appointed experienced consultant Rodney Lay as the group’s new head of product to drive innovation and further spearhead MGP’s new offerings to come to market.

Mr Lay joined MGP from research house Independent Investment Research (IIR). Previously he held senior positions at Standard & Poor’s and Aegis Equities Research.

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