Managed Account Services
MDA Operator assists advisers to manage client portfolios using either a discretionary (MDA) or individual (IMA) approach. In broad terms, MDA services are arrangements that involve a person (an MDA operator) managing a portfolio of assets for a retail client on an individual basis. This may include arrangements that are commonly marketed in the industry as separately managed accounts, investment advisory programs, and managed discretionary portfolio services and discretionary portfolio accounts.
The managed account service offered by MDA Operator includes the following components:
- The provision of an FSG and MDA/IMA Agreement to each client explaining the service and documenting the investment program to be implemented;
Templates for advisers to use in the preparation of Advice;
- Account set up and onboarding workflow
Investment performance reporting
Reporting of performance, transactions, holdings, income and expenses with web and app client portal access
Periodic rebalancing of a client’s portfolio;
Annual reporting including tax components for Investors
A proprietary portfolio management software is provided by MDA Operator to support the managed account service offering. This technology assists in portfolio construction of the Investment Programs implemented by the MDA Operator and the Adviser. A key differentiator of MDA Operator is its ability to offer these managed account services in a scalable, efficient and flexible manner. This is achieved by dynamically decoupling the personalised client investment program (IP), from the core investment building blocks and attributes that form the basis of the investment program. Advisers can therefore leverage the scalability of portfolio construction using these building blocks, using their intellectual property of portfolio construction, with the efficiency and flexibility of tailoring each clients investment program to suit their investment needs.
In servicing both discretionary and individual managed accounts, MDA Operator provides an Adviser flexibility in servicing of clients, whilst minimising the administration burden and costs.
Importantly, Advisers can access and maintain their Approved Product List dynamically, and the building blocks implemented will ensure alignment and control. Non-compliance or changes to APL alerts and notifications will be triggered for audit and rebalancing purposes.
Moreover a proprietary rebalancing engine and order execution module is used by MDA Operator to compare a clients portfolio holding with their Investment Program. Trade orders are generated to bring a client’s portfolio back in line with the pre-agreed client investment program.
Client agreed trading, tax rules, screening restrictions and constraints are also taken into account by the rebalancing engine. This means the Adviser can tailor the Investment program to prevent specific actions (buys or sells) on a tax effectiveness or ethical basis as per pre agreed client instruction. Trading restrictions will set minimum parcel values for orders, to minimise brokerage costs whilst offering default securities for these net held orders.