Self-licensed advisory firm Knight Financial Advisors has unveiled a Managed Discretionary Account (MDA) service built in partnership with listed managed account operator Managed Accounts Holdings Limited (MGP), which will replace the licensee’s proprietary investment administration system and see up to $300 million transitioned to the new solution.
The Perth-based practice, which has successfully run MDA portfolios for almost a decade, engaged MGP subsidiary managedaccounts.com.au late last year to build a customised solution that enabled the dynamic, professional management of portfolios while minimising repetitive, manual administration; lifting back office efficiency and releasing the group’s four advisers to spend more time infront of clients.
As part of the build, Knight Financial also developed an enhanced investment and corporate governance framework. Independent consultant Stephen Romic, head of research at DFS Portfolio Solutions, joined the group’s investment committee to strengthen the decision making process and provide greater insight on portfolio construction, asset allocation and investment selection.
According to Peter Farlie, director of Knight Financial Advisors, the new MDA Service will allow the group to focus on growth while delivering the same high level of client service and improved after-tax client outcomes.
“We’re able to deliver a more dynamically managed portfolio solution through our partnership with managedaccounts.com.au and we’ve also addressed many of the challenges commonly faced by advisers who specialise in direct investing,” he said.
“A major benefit is our ability to quickly implement dynamic asset allocation changes and investment ideas based on market developments and events.”
The Knight Managed Account Service, which went live in April, lifted the number of MGP Services in the market to 41 with the group on track to have between 45 and 50 by the end of the financial year, according to David Heather, chief executive of MGP.
‘’We are delighted to have been selected by Knight to deliver a customised MDA solution. In particular, it is pleasing that Knight has recognised our market leading capability to facilitate portfolio management that matches their needs. Knight now has the ability to manage client portfolios with discretion, execute trades across their client base through a panel of brokers selected by Knight, and where they see fit, outsource portfolio management of selected asset classes to external managers.’’
MGP is also on track to roll out further MDA platforms over coming months with further interest also being sought by licensees with their own MDA Operator license seeking next generation integrated solutions.
