Select strengthens its partnership MGD Wealth.

The Select Asset Management Limited group (Select) and MGD Wealth Limited (MGD Wealth) have strengthened their partnership after the addition of a third portfolio, the LDI Connect 20 Portfolio, and achieving the milestone of $100m in total funds under management for the LDI Connect Portfolios, with the first 2 LDI Connect Portfolios, LDI Connect 3 and LDI Connect 7, having been launched in January 2012.

Select Fund Services is the responsible entity for the LDI Connect Portfolios while Select Investment Partners provides implemented portfolio services to MGD Wealth, the investment manager of the LDI Connect Portfolios through its Customised Portfolio Solutions (CPS).

Stephen Furness, Director and Head of Investment Advisory of MGD Wealth, said, “The launch of LDI Connect 20 to provide cash reserves to meet longer term liabilities than envisaged with LDI Connect 3 and 7 and along with the growth of the LDI Portfolios to over $100m in less than 2 years demonstrates the benefit of working with an experienced implemented portfolio consultant such as the Select group where they provide an “end to end” solution. It allows non-institutionally aligned wealth management businesses such as MGD Wealth to compete with the vertically integrated advisory businesses, adding value to our shareholders but more importantly to our clients by aligning them with our Liability Driven Investment process.”

David Yale, Executive Officer and Head of CPS for Select, said, “As with all of our CPS partners, we have structured the LDI Connect Portfolios so that MGD Wealth can offer their clients customised portfolios under their own brand and on their preferred administration platforms, that they control as investment manager, with Select Investment Partners providing them asset consulting and implemented portfolio services.”
The launch of MGD Wealth’s LDI Connect 20 Portfolio added to the earlier releases this year of CPS portfolios by DMG Financial Planning Pty Limited and Stonehouse Financial Services Pty Limited, advised by Select Investment Partners.

Mr Yale said, “We are currently in discussions with a number of other non-aligned dealer groups who are also looking for a new source of valuable and FoFA compliant revenue and/or extensive back office efficiencies with an institutional portfolio management capability that allows them to meet the best interest tests for their clients.” He said, “All of these potential CPS partners are looking for value and differentiation in their investment options for their clients beyond the use of a standard model portfolio implemented inefficiently by individual advisers.”

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