According to ASIC’s RG 179.1 a Managed Discretionary Account is defined as, “a facility, other than a registered managed investment scheme (registered scheme) or an interest in a registered scheme with the following features:
(a) a person (MDA client) makes contributions;
(b) the client portfolio assets are managed on an individual basis by another person (MDA provider) at the MDA provider’s discretion, subject to any agreed limitation; and
(c) the client and the MDA provider intend that the MDA provider will use the client portfolio assets to generate a financial return or other benefits for the client”.
Managed Discretionary Account is essentially a portfolio management service in which investors provide funds to an investment manager to manage your portfolio in line with your instructions.
By setting up a Managed Discretionary Account, you are able to remove the constant back and forward between you and the manager when it comes to the buying, selling or applying for investment in a wide range of investment products. So essentially, you are giving your money – or some of it – to someone else to look after.
The key benefits of a Managed Discretionary Account are that you are gaining access to a professional investment manager with extensive access to research and expert stock selection, which ultimately includes their active management of your account on a daily basis, responding proactively to market changes, although for yourself it’s actually a ‘passive investment’.
In addition, your Managed Discretionary Account can have a high degree of flexibility and tailoring to your specific investment strategy and or needs, including your risk tolerance rather than your money being merely thrown into a fund along with all the other investors pooled money.
In this way, Managed Discretionary Accounts are different from managed funds and provide greater transparency – through portals and individual correspondents - as to what the investors’ money is doing and when.
According to ASIC’s RG 179.1 a Managed Discretionary Account is defined as, “a facility, other than a registered managed investment scheme (registered scheme) or an interest in a registered scheme
When looking to invest money into a Managed Discretionary Account, there is a range of key elements that you should always look for when assessing the viability of a manager for your account. Firstly, you want a manager who has knowledge around not just securities, but also a wide range of derivatives, managed investments, foreign exchange, margin lending and alternative investment strategies.
1. Schedule an appointment (Conference Call) with an Investment Manager
2. Submit a Managed Discretionary Account (MDA) application with Walker Capital Australia.
3. Open a trading account with the Walker Capital Australia’s executing broker.
4. Select from our range of investment strategies and choose your asset allocation between the choices of accounts.
5. Once all accounts are opened, and funds have been chosen, our team gets to work and begins trading.