What is a managed discretionary account?

A managed discretionary account (MDA) is a service where a portfolio of investments is maintained for you and you provide discretion to an investment manager to make decisions about that portfolio on your behalf. In this way, you delegate the day to day decision making about your investment portfolio.

MDAs are regulated by the Australian Securities & Investments Commission (ASIC) and the provision of MDA services must meet certain conditions of the Corporations Act 2001, Regulatory Guide 179 and ASIC Class Order CO 04/194. MDAs are managed by a Managed Account Operator that must hold an Australian Financial Services License authorising them to provide MDA services. MDA services may operate with an external Managed Account Adviser who generally provides model portfolio solutions.

Why use a managed discretionary account?

Using a managed account allows you to gain access to professional investment management expertise offered by a range of investment managers using a model portfolio approach. The investment managers are responsible for managing model portfolios in accordance with key investment objectives as set out in their Investment Philosophy. The MDA option allows a portfolio to be constructed in accordance with your own personal objectives, risk tolerance and asset preferences.