||ASIC compliant, Managed
Discretionary Accounts (MDAs) are fast becoming the choice of many investors
worldwide. In many ways traditional Managed Funds, and even existing Managed
Discretionary Accounts such as SMA's, IMA, etc have not changed to meet the
needs of today’s avid and astute investor. We are witnessing a steady demand
for greater disclosure and an instinctive mistrust of secret or hidden
Prudent investors now demand (and rightly so) consistent results, total
accountability, transparency and flexibility from all of their investments.
The days of mailing a quarterly or yearly statement with multiple fees,
non-disclosure of instruments traded and continual payments to Managers
irrespective of performance are certainly a thing of the past.
Why an Account
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
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
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.
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',
MDA can save you
considerable time, effort and cost in managing client portfolio's.
MDA delivers a scalable solution for all of our ASX Participant broking
firms to operate and provide daily on-line portfolio reporting. All
clients have 24x7 internet access to their
portfolio. As an on-demand service, your MDA can be operational within days.
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.
- 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
- Each client account has an Account/Chess HIN
- All trades are done via the client Account/ HIN5
- Direct-to-market real-time trading system
- 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
- instant provisioning of new MDA accounts
via existing Lite->broker screens.
- only available to ASX participants, or AFSL
meet the requirements of an MDA operator1.
- integrates into existing broker white label
and badging service
- process all corporate actions, and all client
- 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
daily account audited basis, of their individual assets.
Platform Trading Fees4
- US stocks ETF's:$0.005 or less per
- 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
- fixed fee, no percentage of FUM.
- unlimited client accounts, unlimited
- single Institutional trading account
- all MDA clients require an associated
account3 for online account access and reporting.
- Dealer groups and Advisors as
administered by the MDA operator, as part of the MDA service
- a fixed monthly fee of $1000 for the
- $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
- Custom model generation algorithm
(can make use of real-time-market data11),
setup from $5,000
- Custom model generation from daily
- 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
short 2-3 minute video overview of Global Trader MDA in operation