MyPlanner unveils new model portfolio

One of Australia’s fastest growing independently-owned dealer groups, MyPlanner has launched an innovative model portfolio solution to lift practice efficiency, lower costs and curb the group’s reliance on expensive institutionally-owned wrap platforms and managed funds.

The My Managed Portfolio (MMP) Managed Account Service, which is a Managed Discretionary Account (MDA) solution, was unveiled on Friday at the MyPlanner professional development day in Brisbane.

MyPlanner managing director, Philippa Sheehan said the decision to build the managed account service was driven by the group’s 120 planners.

“There are many different products and platforms on our approved product and service list, and the MMP Managed Account Service is an alternative for advisers who believe the cost of platforms and managed funds is too high and not worth it,” she said.

“Many of our advisers say it’s increasingly hard to justify the cost of investing in funds and administering portfolios via a wrap platform. Other advisers who are using direct share models have found that administering changes within those portfolios tedious as their client bases expand.”

MyPlanner partnered with specialist MDA operator, Managed Accounts Holdings Limited (ASX: MGP) to develop the bespoke service. MGP is responsible for the overall operation, administration and compliance of the MMP Managed Account Service.

The implementation process involved establishing an eight-person investment committee and constructing 23 managed portfolios including 5 managed fund-only portfolios to cater for advisers who still wish to provide clients with managed fund exposure solely. The portfolios are managed by four professional investment managers: Joseph Palmer & Sons, DFS Portfolio Solutions, Endeavor Asset Management and Beulah Capital.

According to Sheehan, who joined MyPlanner in November from IOOF-owned My Adviser, there’s a need for a well-resourced mid-tier boutique licensee with no institutional product ties and the flexibility to develop solutions and functionality that advisers need without getting slowed down by internal politics.

“A managed discretionary account solution is a good fit for many financial planners. Some of our planners don’t have the time, experience or desire to build portfolios, and licensees don’t want the risk and compliance headache associated with inexperienced advisers trying to manage portfolios. Clients, however, want a more direct, transparent, flexible and transparent service. With the right structure and procedures in place, licensees and advisers can offer a tailored solution which is designed and managed to meet their clients’ personal needs and objectives,” she said.

“This process has demonstrated that we don’t need to solely rely on big brand fund managers because there are many boutique Australian-based managers who can construct and manage robust investment portfolios focused on client outcomes.”

David Heather, chief executive of Managed Accounts Holdings Limited said: “We are pleased to have been selected by MyPlanner to develop and operate the MMP Managed Account Service that can support any MyPlanner practice business model and client value proposition.”