Listed managed discretionary account operator, Managed Account Holdings Limited (MGP) has highlighted interest from advisory firms was continuing to grow evidenced by ten new financial advisory firms having signed an agreement in the 2015 financial year to implement an MDA Service.
In MGP’s latest market update, the group announced it had signed contracts with ten new clients in the 2014/15 financial year. In the June quarter alone, six Australian Financial Services Licensees, representing total funds under advice exceeding $1billion, executed a memorandum of understanding. They joined two additional licensees, with collective funds under advice of over $500 million, who officially launched their new MDA Service in the June quarter.
Strong client acquisition and organic growth saw MGP boost funds under administration to $1.506 billion, as at June 30, 2015. This was despite a flat Australian equities market.
Chief executive officer David Heather said the pipeline of new clients and inflows for MGP was extremely encouraging, with seven MDA services currently being implemented and on track to go live later this quarter.
“These new services, along with flows from our existing supporters, provide a base for strong inflows and support for the 2016 financial year,’’ he said.
Heather added that demand for MDA solutions had markedly increased due to greater investor and adviser awareness of the potential benefits of running an MDA service.
“There’s definitely a lot of interest in managed accounts across the advisory market but particularly from the independent financial advisory (IFA) segment,” he said.
“Advisers who are thinking about the future of advice don’t see wraps as the way forward for dynamic client-centric businesses and they’re looking to partner with us to deliver a complementary investment and administration solution for their business. The MGP solution is well placed to provide a non-institutionally owned alternative for advisory firms who are looking to increase business productivity, improve client service and deliver a more efficient and cost effective investment solution to their clients.”
MGP, which currently services 33 licensees, also announced a quarterly dividend payment of $0.002 per share for the June quarter, taking the overall financial year dividend to $0.008 per share and representing an unfranked yield of 4.4% based on a 30 July 2015 share price of $0.18.
Heather also noted interest in MGP’s subsidiary Planner Holdings Limited (PHL) had exceeded expectations both in terms of the quantum and types of businesses looking to be acquired.
Source: Managed Account Holdings
