MDA operator integrates services for boutiques


By Krystine Lumanta

Email Article Print Article

Specialist managed discretionary account (MDA) operator is expected to surpass $1 billion in assets under administration after launching its services with two large boutique financial advice firms.

The firms, Affinity Wealth Services and Redgum Wealth Group, had integrated the MDA solution into their businesses, chief executive David Heather said.

“The arrangements with Affinity and Redgum are significant in that both firms have previously administered client portfolios off platform but have seen the need to migrate to a MDA structure for advice efficiency, as well as administration efficiency,” Heather said.

“Any advice business contemplating providing equities advice on a large scale should take the time to look at the range of options available.”

Affinity Wealth Services was spun out of AMP-owned dealer Hillross in 2009 and signed with in January, transitioning about $180 million into the new MDA solution over the next 12 to 18 months.

The firm has around $350 million in assets under advice.

Affinity principal Keith Jones said the solution was chosen as it allowed the advice firm to focus on the delivery of quality service and advice without being distracted by back-office administration.

Redgum Wealth Group was also in the process of rolling out the MDA service to its 200 clients and expected the new service to reduce the group’s administration workload and allow more time and resources to be spent on enhancing its investment research and portfolio management capabilities.

“We started to experience capacity constraints because previously every individual client portfolio has to be handled separately,” Redgum principal Mark McLennan said.

“With this system, we’re more efficient and productive.

“We can still individualise client portfolios and the business can continue growing at a steady pace.”

The practice has over $200 million in assets under advice., previously Investment Administration Services, was established in 2004.

« Back to Articles