Managed Account Holdings (MGP) have increased their slew of new deals thanks to growing interest in implementing managed discretionary account (MDA) services, according to their June 2015 Quarter Update report.
MGP signed 10 new financial advisory firms in the 2014/15 financial year with the company boosting its funds under administration to $1.506 billion as at 30 June 2015, despite a flat Australian equities market.
MGP’s chief executive, David Heather, said the pipeline of new clients and inflows for MGP was “extremely encouraging”, with seven MDA services currently being implemented and expected to go live later this quarter.
“These new services, along with flows from our existing supporters, provide a base for strong inflows and support for the 2016 financial year,” he said.
According to Heather, the demand for MDA solutions had increased as a result of greater investor and advisor awareness surrounding their client offerings.
“There’s definitely a lot of interest in managed accounts across the advisory market but particularly from the independent financial advisory (IFA) segment,” he said.
“Advisers who are thinking about the future of advice do not see wraps as the way forward for dynamic client-centric businesses and they’re looking to partner with us to deliver a complementary investment and administration solution.”
Currently, MGP services 33 licensees in total and was one of the first entrants into the managed account market in Australia when it was established in 2004.
Heather said MGP’s consumer offerings provide a non-institutionally owned alternative to for advisory firms, affirming that interest in MGP’s subsidiary Planner Holdings had also exceeded expectations in terms of the types of businesses looking to be acquired.
