Listed managed discretionary account operator, Managed Account Holdings Limited (MGP) will build and implement customised managed account solutions for two of Australia’s leading boutique financial advisory firms that will in turn lift the group’s total funds under administration (FUA) above $2 billion.
The two boutique licensees, which collectively manage around $500 million, plan to migrate the majority of their FUA onto the managedaccounts.com.au solution over the next two years as part of an efficiency drive to improve the advice process and client experience, increase practice productivity and profitability, and lower investment and administration costs.
MGP chief executive officer, David Heather said the group was currently building a bespoke managed account service for each new licensee, after successfully implementing a new MDA service for Gold Coast-based dealer group MyPlanner Australia earlier this year.
He also noted a healthy pipeline of potential new clients, with a number of quality advisory firms in final discussions.
“We expect to execute several of these arrangements in the June quarter while retaining our focus on delivering to existing clients,” Heather said.
MGP currently services 31 licensees.
In the March quarter, the group recorded a $181 million increase, with FUA exceeding $1.5 billion in early April, putting the company on track to achieve its prospectus target of $1.56 billion (FUA) by the end of June.
Mr Heather said continued growth momentum during the March quarter, through a combination of net inflows and market performance, placed the company in a strong position to achieve its FUA targets, assuming the continuation of normal market conditions.
He added that demand for MDA solutions had markedly increased in the last six months as an increasing number of investors and advisers learned about the potential benefits.
“We are pleased with the increased interest in managed accounts across the market. The managedaccounts.com.au solution is well placed to provide an unconflicted solution to any advisory firm looking to deliver efficient and cost effective investment solutions to their clients’’, Mr Heather said.
