Provider collaborates to tailor MDA services

Philo Capital Advisers has gone live with a managed discretionary account (MDA) service specifically tailored for the needs of Melbourne-based advisory business, Strategic Wealth.

Philo Capital Advisers is a third party MDA provider that works with advice businesses to co-design and implement MDA services based on the adviser’s existing platform relationships.

According to Philo Capital Advisers CEO Brett Sanders,  the variation to existing managed account service models is that Philo is neither the model portfolio manager, nor the platform provider. Instead, Philo works in collaboration with the advisory firm to identify a preferred portfolio manager and to deliver a service with the advice firm’s favoured investment platform.

The MDA service designed for Strategic Wealth features BT Panorama as the platform provider, JANA Investment Advisers as the investment consultant and Antares as the direct equity model manager.

“We are very excited about the benefits this service will deliver to our clients,” says Strategic Wealth managing director, Peter Wilson. “Strategic Wealth is able to provide access to leading investment expertise to manage the model portfolios and the MDA structure allows client portfolios to be rebalanced regularly, quickly and equitably.

“BT Panorama provides 24-hour reporting on client-friendly desktop and smartphone apps. Philo’s MDA service is cost competitive, and clients also enjoy the benefit of having any investment manager fee rebates passed on to them in full. Strategic Wealth has chosen to be solely remunerated through advice fees – we do not share in the MDA revenue. All up, we think this is an outstanding offer for clients.”

In explaining the flexibility of the Philo structure, Sanders said Strategic Wealth wanted to have access to a service that was consistent with its investment philosophy, represented value for money and provided a first class client experience.

“Through a very constructive collaboration with Strategic Wealth, BT Panorama, JANA Investment Advisers and Antares, we believe this goal has been achieved. Other advice groups we are working with have different investment beliefs or goals, and their services vary accordingly. For example, they may choose to work with different consultants or have a different number of portfolios,” Sanders said.

Zac Leman, the Head of Managed Accounts at BT, noted that BT had invested in functionality to support MDA providers.

“We have developed functionality on BT Panorama specifically to support MDA providers, as well as creating implementation support teams that work closely with third party MDA providers, like Philo,” he said.

“Through these collaborations, advice groups have access to a contemporary platform and experts in tailored managed account design to help them build solutions to suit their business and provide a unique investment offer to their clients.”

Disclosure of interest: IMAP Chair Toby Potter is a shareholder in Philo Capital Advisers.

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