Managed Discretionary Accounts Might Be Right For Your Portfolio

Managed Discretionary Accounts - MVP Financial Perth

Article written by Janean Hicks, Director of MVP Wealth

 

In a time of market volatility, the ability to transact on a client’s portfolio has never been more critical; a delay by even a few days could cost a client thousands of dollars.

What Are Managed Discretionary Accounts (MDAs)?

Essentially Managed Discretionary Accounts are a service where a portfolio of investments is maintained for you, and you provide discretion to an investment manager to make decisions about that portfolio on your behalf. In this way, you delegate the day to day decision making about your investment portfolio.

What are the benefits of a Managed Discretionary Account?

Not just another product on the market, Managed Discretionary Accounts provide a solution that underpins the businesses of all market participants:

  • MDAs offer an integrated investment administration, investment management and advice service which removes duplicated layers of cost
  • MDAs provide advisers with significantly improved efficiencies, promoting better outcomes
    (Note: the dealer/investment manager can continue to notify you prior to making any change to a portfolio if you wish; however, we have seen that clients eventually view the advantages of the discretion and the ability to move in and out of stocks quickly so as to alleviate any negative portfolio performance/outcome)
  • MDAs enable Fund Managers to deliver solutions at sharper pricing without compromising portfolio outcomes
  • MDAs provide an ideal solution for High Net Worth Individuals and SMSFs with the majority of investors in some MDA offers being SMSFs
  • MDAs allow for direct equity solutions, with a lower raw cost and transparency of investments and an ability to control your tax position
  • The technology used has been specially designed to cater for direct investments as well as unitized structures and have sophisticated portfolio modelling capability
  • An MDA can have different fees, delivering a “pure” fee-for-service approach

A Managed Account is an investment with a number of specific features which can benefit you.

  • You beneficially own the investments in your Managed Account allowing for full flow through of all dividends and franking credits.
  • The Investment Manager develops a Portfolio which reflects the investment objectives and approach of the selected Investment Option. Your Portfolio applies these same rules.
  • MVP Financial can select from six different methodologies a tax methodology that suits your needs.

Other benefits of a Managed Discretionary Account

  • Daily monitoring and active management of your portfolio by means of a model portfolio approach
  • Immediate response to market changes
  • Access to extensive research and expert stock selection
  • Investment flexibility with a portfolio tailored to your own personal objectives, risk profile and asset preferences
  • Administration convenience and cost saving
  • Ability to view your portfolio transactions and print reports via an investment platform portal at any time
  • Convenience and cost-saving through provision of tax reports to your accountant at the end of the financial year
  • No exit fees

If your interested an MDA for your portfolio or you have questions, get in touch! We’re happy to help you investigate which strategies are appropriate for you. Call us at 9217 2400.

Managed Discretionary Account Service

While financial strategy formulation and advice including investment strategy design and analysis are areas of advice we have expertise in, MVP Financial prefer to appoint independent experts for the specific management of investment portfolios.

The investment performance targets we have stated as being expected are demanding and will not happen without the help of an investment expert with discipline and skill. It takes particular systems, skills, experience and processes to implement the investment strategies outlined.

MVP Financial feel strongly about the need to get this part of the process right, so we have partnered with a leading investment management firm, Joseph Palmer & Sons to offer their Managed Discretionary Account (MDA) Service.

MVP Financial do recommend an MDA Service to manage your investments on an ongoing basis.

MVP Portfolio Managers

Information on Joseph Palmer and Sons (Investment Manager)

Joseph Palmer & Sons is a Stockbroking organisation based in Sydney. The firm was established in 1872 and since inception has been 100% owned and operated by the Palmer Family. Joseph Palmer & Sons is the oldest Stockbroking partnership in Australia.

Joseph Palmer & Sons is the oldest family-owned Stockbroking and investments advisory business in Australia and have given investments advice and successfully managed portfolios for more than 140 years. Joseph Palmer & Sons have extensive experience in managing and advising on share investments. Analysis and advice on large company share investments is Joseph Palmer & Son’s core competence. They were one of the original Sydney Stock Exchange member organisations in 1872 and intends on remaining an Australian Securities Exchange affiliate for generations to come.

The team of Investments Advisers are well trained and committed to providing MVP Financial’s Wealth clients with sound advice on quality shares based on their extensive knowledge.

Joseph Palmer & Sons are not associated with any product providers and offer unbiased and transparent advice.

MVP Financial have appointed Joseph Palmer & Sons as our Investments Manager’s to assist us in providing tailored portfolio solutions and quality investments advice to our private clients.

If you have any questions on this topic, get in touch. We can help you investigate which strategies are appropriate for you.

Contact us today –

Get in touch

 


Subscribe for a FREE copy of our latest personal tax minimisation guide.
Plus 10 ways to reduce your personal tax.

Subscribe to the MVP Financial Newsletter


This article is provided as general information only and does not consider your specific situation, objectives or needs. It does not represent advice upon which any person may act. Implementation and suitability requires a detailed analysis of your specific circumstances.