Five boutique financial advice firms have teamed up with managed discretionary account (MDA) provider Managed Account Holdings, resulting in a collective transition of $500 million from wrap platforms to MDAs.
In a statement, the company said the deal would see the groups launch new services, which will be operated by Managed Accounts Holdings and will boost the MDA provider’s FUA to more than $2 billion.
The boutique firms are Shine Financial Services; Array Financial Services; Mayneline Financial Services; Renouf & Partners Financial Planning – all licensed by Cumulus Financial Group – as well as another Melbourne-based financial planning firm, which did not want to be named.
Managed Accounts Holdings said it has also appointed Rodney Lay as the group’s new head of product to drive innovation and further spearhead the company’s new offerings.
Mr Lay joins from research house Independent Investment Research. Previously, he held senior positions at Standard & Poor’s and Aegis Equities Research, the statement said.
Cumulus director and Shine Financial Services principal, Damian Dunell, said the group was “impressed” with the firm’s offering, which will allow Shine to design, build and implement its own branded MDA service.
Cumulus’ MDA investment program and solution, known as 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,” he 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.”
Managed Accounts Holdings chief executive David Heather said advisers are increasingly looking for a unique, non-conflicted solution capable of supporting all managed investment structures.
“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.”