Philo’s MDA service designed for Melbourne firm Strategic Wealth features BT Panorama as the platform provider, JANA Investment Advisers as the investment consultant and Antares as the direct equity model manager.
Philo said its managed account philosophy is built around being neither the model portfolio manager nor the platform provider, rather it collaborates with the advisory firm to identify a preferred portfolio manager and to deliver a service with the advice firm’s favoured investment platform.
Strategic Wealth managing director Peter Wilson said he’s very excited about the benefits this service will deliver to its clients.
“Strategic Wealth is able to provide access to leading investment expertise to manage the model portfolios and the MDA structure allows client portfolios to be rebalanced regularly, quickly and equitably. BT Panorama provides 24-hour reporting on client-friendly desktop and smartphone apps,” Mr Wilson said.
“Philo’s MDA service is cost competitive, and clients also enjoy the benefit of having any investment manager fee rebates funds passed on to them in full.
“Strategic Wealth has chosen to be solely remunerated through advice fees- we do not share in the MDA revenue. All up, we think, this is an outstanding offer for clients.”
Philo chief executive Brett Sanders highlighted the flexibility of the structure, saying Strategic Wealth ultimately wanted to have access to a service that was consistent with its investment philosophy while representing value for money and a first-class client experience.
“Through a very constructive and enjoyable collaboration with Strategic Wealth, BT Panorama, JANA Investment Advisers and Antares we believe this goal has been achieved. Other advice groups we are working with have different investment beliefs or goals and their services vary accordingly,” Mr Sanders said.
“For example, they may choose to work with different consultants or have a different number of portfolios.”
BT head of managed accounts Zac Leman said it had developed functionality on BT Panorama specifically to support MDA providers, as well as creating implementation support teams that work closely with third-party MDA providers like Philo.
“Through these collaborations, advice groups have access to a contemporary platform and experts in tailored managed account design to help them build solutions to suit their business and provide a unique investment offer to their clients,” Mr Leman said.
What exactly is a ‘non aligned advice business’? Is that one where your Licensee is part of a group of companies where those companies and divisions are financial service and product providers whose products you may recommend?