Why an Account based MDA?
Since the GFC, investors have lost an appetite for investments where they do not have ownership control of their assets. Many existing SMA/MDA's make use of Registered Entities which have minimal asset backing, account based MDA's make use of existing broker clearing/custodian structures which has stood the test of time. This past approach is due in part, to the MDA operator not being able to achieve the cost efficiencies required to operate an MDA, using account, or HIN based trading. ASX participants or AFSL brokers have a significant advantage over existing Australian MDA operators when coupled with VillageMall ASX participant, Broker infrastructure.

With the introduction of our MDA service, as an option to our existing Clients with a broker infrastructure, the economics of account based MDA's has changed forever.

Australian HIN Based, Managed Account
While unique to Australia, HIN's are part of the Australian Investment environment, and many Investors believe that in the current market a HIN based Managed Account rather Beneficial ownership is an essential part of their investment strategy.  This approach is not unlike the almost total movement of cash from cash management accounts into Government guaranteed deposits some years ago. Uniquely VillageMall offers a HIN based, fully segregated, model driven managed account service, to compete with a traditional beneficial ownership based scheme.

Global Trader MDA
The Australian domestic stock market accounts for approximately 2% of global market capitalisation. Investors who are fully invested in Australian equities run the risk of limiting their potential returns and missing out on worldwide investment opportunities. The rise of the Australian dollar plus the recent globalisation of online trading technologies, has lead to our latest "Global Trader" MDA service, giving access to companies that many know and interact with regularly such as Microsoft, General Electric, Nokia, Google and American Express, just to name a few. This service supports direct trading and individual client ownership of a wide range of investment types, across more than 60 global markets, via the following AUD,NZD,CAD,CHF,EUR,GBP,HKD,JPY,MXN,SEK or USD currencies. All MDA account positions are re-calculated daily, and available on-line to all MDA clients in AUD.

Mass tailored portfolio management
The twin drivers of a) 'client centric' becomes the focus of solutions, and b) the need for scale for growth, or perhaps even survival in these times of reducing margins. With this in mind, Wealth Management professionals are  seeking to eek out inefficiency and come up with 'elastic' operational models. VillageMall's unique fully lights out MDA technologies address both of these drivers today, in both a local Australian and also a Global market, while meet the strict Australian specific compliance and client and tax reporting.

Broker MDA- is a Managed Discretionary Account, with fully integrated manufacturing, rebalancing and management, and online trading capabilities; allowing ASX participant brokers, or their Intermediaries to provide an separate account based Managed Discretionary Account service to their clients. MDA operators can perform portfolio adjustments, across all their Lite->client accounts, linked to the MDA service. Portfolio management applications that traditionally take many hours (if not days) of complex, time-consuming effort can now be performed automatically against model portfolio (mandates).

By streamlining the portfolio manufacturing process via on-line interfaces to internal/external Investment manager models, and allowing automated rebalancing procedures to be performed 'at the click of a button', Broker MDA can save you considerable time, effort and cost in managing client portfolio's.

Broker MDA delivers a scalable solution for all of our ASX Participant broking firms to operate  and provide daily on-line portfolio reporting. All Broker MDA clients have 24x7 internet access to their portfolio. As an on-demand service, your MDA can be operational within days.

Broker MDA caters for tax, valuation, all corporate actions and performance reporting of the Managed Discretionary Account, plus individual client portfolio's.

Each of the Model Portfolios are managed in accordance with the investment Mandate for the relevant Model Portfolio. The Mandate specifies how the Model Portfolio is to be managed, the investment strategy, what the Model Portfolio can invest in and what the costs are.

The investment manager may manage the Model Portfolio, via our online interface in accordance with the Mandate by supplying the composition of the Model Portfolio and any changes as they occur. The Broker MDA platform, and MDA operator, will ensure all Investors, linked to the Model are invested in accordance with the particular Model Portfolio.

Features⁶

• On-line interface to model portfolio (mandate) providers.
• Paperless operation
• Trade on 90 plus markets worldwide
• Multi-currency account support
• Australian compliance, franking, tax treatment etc support
• Daily portfolio positions in AUD
• Unlimited Models, supports IMA requirements or transition to Model based MDA's
• Each BPS client may have a MDA portfolio
• MDA Clients may have multiple MDA accounts, each account may subscribe to a model. Standard broker trading account structures.
• Each client account has an Account/Chess HIN account⁵
• All trades are done via the client Account/ HIN⁵
• Direct-to-market real-time trading system interface
• All client orders across MDA scheme, are submitted in real-time via our direct to market access, while still retaining individual client account trading.
• There is NO pooling of assets, all accounts are fully segregated and individually audited on a daily basis.
• All MDA client reporting is provided via existing Lite->client reporting service, allowing fully integrated reporting across all accounts held with the broker.
• a transparent extension, to existing broker infrastructure.
• instant provisioning of new MDA accounts via existing Lite->broker screens.
• only available to ASX participants, or AFSL brokers, which also meet the requirements of an MDA operator¹.
• integrates into existing broker white label and badging service
• process all corporate actions, and all client account processing
• end of year tax pack
• optional SMSF⁸ service integration for tax return processing
• optional Custom Model, generated via MDA operator supplied custom algorithm
• optional Custom Model generated and updated via supplied "Index" feed
• optional SOA/SOAA/ROA generation, electronic signatures, and filing within MDA.
• Protects existing client, broker relationships; VillageMall is a Enterprise Software supplier, not a provider of financial services.
• Provides clients with total transparency on a daily account audited basis, of their individual assets.

Platform Trading Fees⁴

• US stocks ETF's:$0.005 or less per share
• US share Options:$0.15 to $0.70 per contract (plus exchange fees)
• US futures:$0.25 to 0.85 per contract (plus exchange, regulatory and carrying fees)
• AU stocks ETF's:0.08% per trade value
• AU stock options:$0.30 per option
• AU futures:$1.00 to $3.00 per contract

Platform Fees

• fixed fee, no percentage of FUM.
• unlimited client accounts, unlimited models
• single Institutional trading account
• all MDA clients require an associated BPS->client account³ for online account access and reporting.
• Dealer groups and Advisors as administered by the MDA operator, as part of the MDA service infrastructure.

Full Service

• a fixed monthly fee of $1000 for the Broker MDA service^1,7
• $45 per year, per MDA account, pay as you go; client on-line access and daily reporting included.
• Optional services
  • SOA/SOAA/ROA template, setup from $1,500
  • Custom model generation algorithm (can make use of real-time-market data¹¹), setup from $5,000
  • Custom model generation from daily "Index feed"¹⁰, setup $1000
  • Daily Client Statement, emailed to client each morning 60 cents per report
  • Intra-day rebalance

MDA Lite Service⁹

• Pay as you go, $150 per client account per year; client on-line access and daily reporting included.
• Daily, Inter-day portfolio construction and rebalance

Video Overview short 2-3 minute video overview of Global Trader MDA in operation