A Managed Discretionary Account is a financial product for investors that ensures clients always maintain ownership and control over your portfolio while you give your Managed Discretionary Account Manager the right to buy, sell and apply for investment products within your fund, on your behalf.
With a formal agreement in place between you and your Managed Discretionary Account manager, the fund works specifically within your investment goals and parameters ensuring that the vision of your portfolio is met.
A Managed Discretionary Account is fundamentally different to many other financial products because it’s not a managed investment scheme (where you buy units) and your assets aren’t mixed together with otherssuch as a Mixed-Use Fund’ (MUF) or an Exchange Traded Fund (ETF). They are an account in which your money is managed for you, in a pre-approved way, with no strings attached – allowing your manager to
As an asset class, Managed Discretionary Accounts differ from funds in the way that they are not a pooled fund and they are invested as per an individual strategy. However, they are not in themselves an explicit asset class, but more built of a range of asset classes to
For example, your Managed Discretionary Account could consist of asset classes such as bonds, CFD’s, currencies, securities even cryptocurrencies, as long as they meet the investments strategy and
With typically a minimum portfolio size exceeding $250,000 or more, Managed Discretionary Accounts are not an asset class that is designed for ‘mum and dad’ investors, but for sophisticated investors, those with over $2.5million in assets or annual incomes for the past 2 years exceeding $250,000.
With this in mind, the Managed Discretionary Account as an asset class can provide a wide range of positive protection or profit
For example, should your Managed Discretionary Account hold a high level of leveraged products, then they are exposed, you personally are exposed to a much higher amount of risk that simply securities or indexes, such as those within Exchange Traded Funds or ETFs. In addition, as you are investing your own capital, you won’t have the level of liquidity that a fund would be able to establish – unless you are a high net worth individual.
Managed Discretionary Account
Like any investment, it is always best to speak with an independent alternative investment adviser to assess the viability of Managed Discretionary Account asset classes and if they meet the needs of your financial goals and investment objectives.
We welcome you to give our team a call to discuss your investment goals and objectives.
You can call Walker Capital Australia on +61 2 8076 2210, and we’ll see how we can help you achieve your investment goals.
Want to read more great information on Managed Discretionary Accounts? Check out ourManaged Discretionary Accounts article: Managed Discretionary Accounts