Portfolios in volatile markets - what key investment factors should be taken into consideration when building managed accounts in volatile markets? Lukasz de Pourbaix, CIO of Lonsec Investment Solutions explained Lonsec’s investment philosophy and he shared practical examples of how Lonsec implements a dynamic approach to portfolio construction.
Click here to view recording of the webinar
To download the PPT presentation click here
To view the video click here
The IMAP inaugural Managed Account Awards recognise best practice amongst investment managers and licensees.
This year's entrants with questions
Managers and licensees wanting to enter in 2019 to gain the recognition
Advisers wanting to know how to assess managed account options
There will also be changes to the submissions template for next year's awards, which we will also run through in the webinar.
To download the PPT presentation click here
Elston Asset Management - Winner, IMAP Managed Account Innovation Award
Elston is a pioneer in developing managed accounts as a preferred way of serving its HNW client base and has made the transition to a national wealth management firm servicing external licensees with a range of Australian equity and multisector investment solutions.
In this presentation, we heard how Andrew and Grayden believe established listed Australian companies will respond to disruption from:
Technology based local disruption
WLM Financial - Finalist, IMAP Licensee Managed Account Awards
WLM Financial is a Sydney based multi-disciplinary practice incorporating financial planning, accounting and tax advice. WLM was an early exponent of Goals Based Advice and Matthew Walker, one of the WLM Principals, has been instrumental in AGBA, the Association of Goals Based Advice since its inception. Using an MDA has been one of their cornerstones in developing a broad suite of capabilities in advice and portfolio management to meet their clients' needs. Matthew covered
Why a Goals Based practice?
What are the differences between Goals Based and other model portfolios?
How to execute
For information on the Portfolio Management Conference click here
The IMAP Managed Account Awards were selected by a panel of experienced investment professionals who understand the portfolio construction and investment selection process through their experience on investment committees, in running managed account and fund portfolios and through their hands on involvement in the development of managed account portfolios.The awards night was a very successful and enjoyable night. Congratulations again to the winners of each category;
Vinnie Wadhera (BetaShares) and Wade Matterson (Milliman) gave an interesting presentation on different types of Investment Risk as well as providing solutions to mitigate these types of risks;
The topics covered included;
- The dilemma of addressing longevity and sequencing risk in retirement portfolios
- The failings of asset class diversification and the case for a ‘Managed Risk’ approach
- The benefits of diversifying income streams within asset classes
- Investment exposures (accessible via ETFs) relevant for market uncertainty, volatility and risk-off views.
To view the video presentation click here
Dan is an Executive Vice President of State Street Global Advisors, and CIO of the Investment Solutions Group. Dan’s global team is responsible for US$310 billion in Assets Under Management and Assets Under Advisory/Consulting, and provided valuable insights into what IFAs across the US, Europe and Asia are doing in the area of managed accounts.
In particular he spoke about how portfolios are being developed which enable IFAs to meet specific client goals – retirement income, growth, long term asset growth – within a single investment framework. Through good partnerships and use of sophisticated tools these independent groups are developing portfolios equivalent to those offered by the largest institutions.
Advisers across the globe face similar challenges to their business model as we do here and Dan’s insights help put our options into a broader context.
Paul O'Connor, Head of Investment Management & Research at Netwealth discussed:
1. What different managed account structures are available to you
2. Best practices in developing your investment proposition
3. How to best navigate your way through a due diligence process
4. What to look out for to ensure you select the right technology partner
5. How to execute an efficient implementation process
To view the video presentation click here
Ralton Asset Management
Ralton is a long established Australian investment house with over 10 years of experience in managing equity portfolios through managed account structures as well as for institutional and retail investors.
In this presentation, hear what Andrew Stanley believes will be the impact of the advent of Amazon and other emerging factors on one of the most significant sectors of the ASX. At a time when Wesfarmers is demerging Coles and Myers is still looking for a CEO, this will be an insightful presentation on a key element in Australian equity portfolios
Paradigm Wealth Management
Paradigm is a very successful Melbourne wealth management business with over 10 years of experience in using MDA services for their clients. The MDA has been one of the cornerstones in developing a broad suite of capabilities in advice and portfolio management. Patrick will cover
Their experience over more than 10 years in delivering advice through MDA services
Their investment approach and the resources they have developed to underpin the MDA
How the managed account service is enabling them to integrate acquisitions
About the IMAP Investment Forum
IMAP’s Investment Forum is a community of interest for dealer group researchers and investment teams and independent researchers that provides a chance to listen to experts and those in other advice practices on the practical issues involved in implementing managed accounts in your advice business. You'll have a chance to share the insights of other professionals.
Who Should Attend the IMAP Dealer Investment Forums:
- Investment advisers, researchers, analysts and portfolio managers from advice businesses;
- Analysts and asset consultants from research and investment consultants;
- Portfolio managers
Concurrent Video Conference – Brisbane / Sydney / Melbourne
Presentation accompanied by breakfast
Sydney, Macquarie Group offices - 50 Martin Place, SYDNEY
Brisbane, Macquarie Group offices - Level 7, 825 Ann St, Fortitude Valley, BRISBANE
Melbourne, Macquarie Group offices - Level 23, 101 Collins Street, MELBOURNE
Date and Time: Friday April 13th 7.30am commencement - 9.00am conclusion
Numbers at each venue are limited - preference will be given to IMAP Subscribers and Dealer group personnel
Cost $ nil
To view the video presentation click here
To download a copy of the white paper click here
To view the video recording click here
The 2018 Adviser roadshow was held on 19th in Melbourne, 22nd in Brisbane and 27th March in Sydney.
The event was attended by over 400 people. Sydney featured a special presentation by Sam Henderson - Henderson Maxwell and Jonathon Hoyle Stanford Brown.
The full day IMAP Adviser Roadshow was a specialist event for dealer principals, adviser group management teams and advisers. It focused on the practical implementation of Managed Account programs in established advisory businesses and how to make this truly effective for advisers and clients.
About the Limited MDA strategy workshop
Advisers who have relied on the LMDA exemption have less than 12 months to determine how to replace this in their practice. Those that attended this workshop learnt about the strategic options available and which worked best for their business. Your choices included:
- becoming an MDA Operator,
- using platform SMAs,
- becoming an External MDA Adviser on another MDA service
- adopting a technology driven advice solution.
- there are several more..
The options varied from platform to platform and not all suited their business.
IMAP has developed a specific program for use with advisers and dealer principals in conjunction with managedaccounts.com.au to help advisers and licensees determine the best course of action for your business.
Investment managers wanting to understand the choice available in managed accounts
The SMSF Association National Conference 2018 was held in Sydney at the ICC over two and a half days.
IMAP brought together the "Managed Accounts Central Expo" to provide the opportunity for financial advisers, dealer groups and other stakeholders to easily connect and talk with a selection of service providers.
Plus to view the latest offerings and discuss challenges, opportunities and learnings from implementing and growing managed accounts as part of the adviser solution mix.
IMAP was supported by:
Tuesday 5 December 2017 InvestTech Investment Technology Conference (Sydney)
InvestTech 2017 is the event where the advice and investment professions meet the technology providers.
Advice and investment are in transition and technology is driving that change, because they have to determine what technology they use to:
- Produce and deliver advice
- Manage client portfolios
- Implement and administer portfolios
- Charge fees
- Report to clients
Managed accounts are at the forefront of technology change. Businesses can choose among over 50 technology suppliers with live options for the advice and investment profession running managed account portfolios.
Whether it’s the integrated options from platform providers or the specialist functionality which technology providers offer meet specific needs – technology is helping advisers and managers reshape their services.
Click here to link to speaker profiles, the programme (presentations are to be found next to the speakers name)
- Major local platforms with technology and administration
- Global technology specialists
- Global managers showcasing US and European capability
- The Australian fintechs including those who have just started their journey of disruption.
Who attended InvestTech?
- Chief Technology officers from advice and investment businesses
- Investment teams wanting to understand how technology will change what they do
This year IMAP again supported the adviser and dealer group community at the FPA CONGRESS held in Hobart, TA on 22 - 24 November 2017 with the "Managed Accounts Central Expo".
The Managed Accounts Central Expo provides the opportunity for financial advisers, dealer groups and other stakeholders to easily connect and talk with a selection of service providers, view the latest offerings and discuss challenges, opportunities and learnings from implementing and growing managed accounts as part of the adviser solution mix.
For this year's Expo IMAP was supported by:
BT Panorama Colonial First State
Financial Simplicity Finclear
Financial Express Praemium
Monday 30 October 2017 Investment Forum (Sydney/Melbourne/Brisbane/Perth - Videoconference at Macquarie Groups office)
Hear from Joel Bloomer, Morningstar on Portfolio Construction in direct equity portfolios and Stephen Romic, DFS on using Managed Accounts in an advice practice.
Joel Bloomer of Morningstar spoke about:
What equity portfolios are best suited to stand alone SMAs or as part of multi asset class portfolios
The experiences of advice firms moving from paper based equity models to implemented equity managed account solutions
Best practice for advice businesses in implementation and operational risk management
Stephen Romic from DFS Portfolio Solutions spoke about:
Their experience over more than 10 years in implementing asset class models and multi-sector portfolios on behalf of IFAs across multiple Managed Account platforms
Important transition management considerations in adopting a managed account business model
What factors have compelled their IFA clients to choose MDA structures in preference to SMAs (and vice versa)
- Joel Bloomer CFA is Head of Discretionary Equity Strategies Asia-Pacific for Morningstar
- Stephen Romic is Principal of DFS Portfolio Solutions, a Melbourne based investment consulting business which has developed extensive in house expertise in portfolio construction in addition to asset class portfolios, primarily implemented through managed funds. DFS's approach explicitly manages risk to achieve portfolio stability for clients.
Click here for Joel's presentation
Click here for Steve's presentation
Wednesday 13th September 2017 MDA Forum (Sydney - at IOOF's Kent St office)
This webinar explored the fundamental differences between the way an SMA should be designed and managed compared to a managed fund and what dealer researchers and financial advisers should be looking for when choosing SMAs. By using a product designed and managed for the SMA environment, the user experience of SMAs for financial advisers and clients can be dramatically enhanced
The video for this webinar can be found in IMAP's video library and IMAP's YouTube channel
Presenter - Roger Walling, Portfolio Manager, Ralton Asset Management
Roger joined Ralton in 2006 and brings over 15 years of funds management experience. He is responsible for stock coverage across several industry sectors and assists Andrew in managing Ralton's portfolios. Prior to Ralton, Roger was a Senior Analyst at Cinnabar Equities where he had sub-sector and stock investment decision-making responsibility.
Roger has a Master of Business & Biotechnology
Tuesday 22nd August MDA Forum (Sydney - at Centric Wealth offices)
Thursday 24th August 2017 (Melbourne) at AJ Gallagher offices
IMAP, with support from a number of MDA Providers, has been meeting with ASIC about the practical difficulties of implementing the changes to the MDA regulations. The Forum was briefed on our progress on:
- External MDA Adviser authorisations
- Unregistered Schemes held in MDA's
- Simplifying the MDA documentation requrements
- Review of SOAs by MDA Providers
Special Forum Topic PI Insurers - Putting Your Best Foot Forward
The forum helped prepare MDA providers for what are becoming increasingly difficult professional indemnity (PI) renewals. MDA providers will learn how to demonstrate a strong narrative to PI insurers to ensure they get the most advantageous terms. Being able to differentiate your operating model from high risk operations can make a significant impact on the PI terms available to you.
With the ASIC MDA Class Order becoming effective 1 October 2017, insurers will be considering the potential for any significant changes to how MDA Providers operate and whether there are consequences for PI insurance rates.
Our expert speakers also considered scenarios that may have the potential to drag MDA Providers in the challenging retail regulatory environment, where adapting to new regulations and a readiness to respond to any issues as they develop is critical.
What happens if?
- breach reporting obligations are triggered (caution: over volunteer v head in the sand)
- systemic issues are evident
- ASIC seeks rectification
- new activities require a strong narrative
- you need to take insurers on your managed accounts (IMA, SMA or MDA) journey
- how well your organisation's risk are presented can make all the difference
- the long term impact of any claim/incident history can be mitigated by improved risk management
Insight and expert commentary was provided by financial services legal specialist Cain Jackson of Wotton + Kearney and PI insurance specialists Mike Herron and Stephen Hughes from AJ Gallagher
IMAP’s Dealer Investment Forum is a community of interest for dealer group researchers and investment teams and independent researchers that provides a chance to listen to experts and those in other advice practices on the practical issues involved in implementing managed accounts in your advice business, plus the opportunity to share the insights of other professionals.
Josh Persky from BlackRock described how BlackRock use risk analytics tools in monitoring & managing multiple risk parameters within their Australian managed account portfolios, and
Jonathan Bayes, CIO of Prime Financial Group, a leading Melbourne based advisory business, talked about the practicalities of adopting managed accounts into their advice process
28 July 2017 Responsible Manager Masterclass
Many AFS Licensees have already or are thinking about how managed accounts – SMAs or MDA’s – will change their advice processes. Whether it’s as a standalone advice provider or as an MDA provider, there are a lot of obligations that Responsible Managers need to understand and incorporate into their business to meet ASIC's requirements.
For advice businesses who have been relying on the LMDA no action position, the next 12 months will involve major changes to their business operating model, and potentially their AFSL.
This Masterclass helped current and potential Responsible Managers to understand their general obligations and responsibilities as well as the specific requirements for businesses offering MDA services.
Attendees learnt about:
- Financial Services Regime
- Responsible Manager Roles and Responsibilities
- Specific MDA Obligations
- Obligations of AFS Licensees
- Workbook - You'll receive a comprehensive workbook and a sample checklist for key tasks
The Masterclass was led by two people with outstanding experience in developing and operating MDA services.
Claire Wivell Plater LLB. is managing director and owner of law firm, The Fold Legal
Toby Potter, Chair of IMAP, the Institute of Managed Account Professionals
6 CPD points apply for attendance
Click on the heading above to go to Presentations and videos from this conference
‘Portfolio management: through the managed account lens' is about turning investment philosophy and principles into cost effective portfolios that work for real life investors.
More than 200 people attended the event including over 100 advisers
This IMAP event was supported by industry specialists speaking on all aspects of the managed account portfolio management process, including:
- managed accounts: why they are the fastest growing sector in the Wealth Industry
- how to implement market forecasts within a managed account portfolios
- turning investment return expectations into portfolio construction
- listed investment options in managed accounts - factor based ETFs, active ETFs, XTBs etc
- establishing and running a successful investment committee
10 July 2017 Webinar - identifying skill, conviction and risks when using concentrated Global equity portfolios in the managed account environment
Historically in Australia only institutions, HNW clients (via private banks) and Family Offices have typically enjoyed the benefit of having direct ownership and control of their overseas shares with Global Managed Accounts. But with platforms and sophisticated trading platforms harnessing the latest technology the broader advisory market now has the same opportunity.
Fund managers are currently offering their high conviction, Global investment portfolios as direct equity holdings or via a managed fund through an SMA environment. This reflects the increasing sophistication of investors that are fed up paying active fees for index-like performance. Though investors currently enjoy greater choice than any time before, it's also harder to keep up with the increasing variety of options.
To make intelligent choices, questions to ask include – “What checklist and tools should you use to select managers?”. “What issues are important to consider when blending different manager's together within your clients’ portfolios?”
Nigel Douglas - Chief Executive Officer (CEO) at Douglas Funds Consulting Pty Ltd which is an independent research firm that undertakes customised fund and client specific research projects as well as investment committee and non-executive director roles. Mr Douglas has over 30 years financial markets experience with high level expertise in investment manager research, asset allocation and macroeconomics.
Alex Haynes, Head of Distribution - Peters MacGregor Capital Management. Alex has over 19 years' experience in the financial services industry. He has worked at BT Financial Group, Credit Suisse Asset Management and more recently as Head of Business Development at Aberdeen Asset Management. Alex holds a Bachelor of Business from the Australian Catholic University, Graduate Diploma from the Securities Institute and has studied more recently at the INSEAD (Singapore).
8th June 2017 MDA Forum - Maximising your business valuation (at Macquarie Bank in Melbourne)
also held 25th May 2017 ( at Nikko Asset Management in Sydney)
“How do Investment Bankers Value Wealth Management Businesses?”
We all want our businesses to be more valuable so that when we finally realise the value we’ve created, it’s a bigger rather than a smaller number.
Vaughan Webber, Director Equity Capital Markets at Bell Potter discussed:
- What do you have to do in your business to make it more valuable?
- When is listing a realistic option?
- What would an acquirer be looking for if you were planning to sell to them?
11th April 2017 MDA Providers Forum
This event addresed the subject of how ASIC are implementing the changes to the MDA CLass order. With the assistance of Foundation Sponsor HUB24, the MDA Providers’ Forum focused on the special and unique interests of MDA Providers. ASIC updated the Class Order in September 2016. and these changes come into effect on 1 October 2017.
The changes are subtle but potentially have quite a significant effect on how businesses should be operated. Claire Wivell Plater, The Fold Legal, an MDA specialist delivered insights on the likely impact of these changes. IMAP received excellent feedback on this event in terms of relevance, usefulness and presentation.
8th March 2017 IOOF Webinar - Using Managed Accounts for investments that are difficult to reach for individual clients
Even the best advisers can find it difficult to take advantage of all the excellent investment opportunities that would be appropriate for their clients.
Issues can arise because:
- Investments require rapid responses, such as IPOs
- Advisers lack the time or background to research and understand many new opportunities in depth
- Some asset classes need to be held in small amounts making the order execution cost ineffective at individual client levels
- Advisers cannot implement tactical or dynamic allocations across their clients as quickly as markets can adjust
- Trading complexity is hard to manage on a client by client basis
Managed Accounts offer a way in which a wider range of investments can be professionally reviewed and portfolios can capture shorter term opportunities.
These can include:
- Being able to accept IPO allocations with certainty
- Incorporating more esoteric asset classes such as infrastructure in cost effective ways
- Alternative exposures to provide portfolio diversification
- Short exposures to hedge portfolios from market downturn
- Holding stocks on international exchanges
This IMAP Webinar explored the opportunities to use managed account portfolios to capture specific investment opportunities will be explored using three examples – IPOs, ETFs and international direct holdings.
Paul Saliba – Head of Portfolio Construction IOOF Research chaired the discussion and brought the Advisers’ perspective to the discussion
Hugh Williams– co-founding Managing Director of Pitt Street Real Estate Partners which is the real estate Investment Manager for URB - an upcoming Listed Investment Company IPO
Peter Harper– Head of Capital Markets- Betashares discussed alternative exposures for diversification, hedging portfolios and capturing tactical opportunities in portfolios
Jason Entwistle– Director Strategic Development Hub24 talked about how international equity managed portfolios have opened up new investment perspectives that were previously not practical for individual advisers.
7th February 2017 How to Deliver on Your Portfolio Promises – Portfolio Construction in Managed Accounts
This webinar on portfolio construction is designed for advisers and dealer group researchers. What differences should delaer group and advisers be aware of when constructing client portfolios utilising managed accounts versus traditional managed funds?
Managed Account portfolios can be much more client specific than multi asset class funds but tend to follow standard asset allocation models across whole dealer groups. Single sector portfolios included in a “whole of portfolio” managed account can also allow a much more individual approach than is possible in a managed fund that might otherwise be very similar.
This webinar will feature two very experienced portfolio managers discussing the issues from an Asset Allocation and single Sector perspective.
Dominic McCormick Head of Investment Strategy / Portfolio Manager - Select Funds
Theo Maas, Global Portfolio Manager, Arnhem Investment Management
- What can asset allocation achieve?
- Dynamic vs tactical asset allocation
- Who should be making the asset allocation decisions ?
- Managed accounts vs adviser developed portfolios – are there any material differences?
- Incorporating client investments
Portfolio construction in a single sector
- What are portfolio managers trying to achieve?
- How different are Managed Account portfolios from managed funds?
- Are there constraints that apply when the clients will be holding securities in their own account?
- Are there transactions a portfolio manager cannot undertake on Managed Accounts that they could do in a managed fund?
15th November 2016 IOOF Webinar Using bonds through a Separately Managed Account to meet your clients’ income needs Webinar sponsored by IOOF
Presented by Alwyn Hung, Portfolio Manager - Fixed Income, Mason Stevens
In this low growth environment where managed fund distributions are not guaranteed and difficult to measure and the potential for rate rises to create capital losses is high, an alternative investment strategy may be required in order to meet client financial objectives, where capital stability and certainty of cash flows is paramount.
This webinar provided information about direct ownership of a bond portfolio and how it can be an available and cost effective way to gain exposure to fixed income. It covered:
- alternative and cost effective fixed income solutions.
- knowledge about differentiating the structural risks and benefits between managed funds and direct investing.
- understanding about how bonds work within a Separately Managed Account.
- the right (and simple) fixed income solution to meet your clients’ goals based on their life stage.
All attendees received a copy the Mason Stevens Whitepaper: Distinguishing Risks between Managed Funds and Direct Ownership – a look at fixed income.
October 2016 IMAP ASIC MDA Legislative Instrument Briefing Video conference Event Sydney/Melbourne
ASIC personnel provided a briefing on the nature and intent of the changes to the MDA regulations.
Toby Potter, IMAP Chairman gave an introduction followed by a presentation from ASIC’s Tony Christie explaining timing and intent of the changes .
Claire Wivell Plater, The Fold Legal then provided her view on the commercial consequences of the changes at the Sydney venue.
David Court and Matthew Twomey from Holley Nethercote provided their view on the commercial consequences of the changes at event in Melbourne.
Both events were held at Macquarie Bank's offices with the appreciation of IMAP.
IMAP August 2016 Roadshow - Sydney, Melbourne, Brisbane
IMAP, the Managed Account industry representative for advisers and organisations had a great turnout from our 4,000 subscribers in all three cities for a full day of practical and informative sessions on what you need to know as a dealer principal or adviser who is using or considering a transition to Managed accounts.
1. Latest views from ASIC on the financial advice industry
A focus on areas for the year ahead including an update on the MDA Class OrderThis panel session will provide insights on their experience with running managed accounts, including portfolio construction, the types of investments used in their portfolios and benefits to their business.
2. Portfolio construction in managed accounts
- Learn about the type of asset classes used to structure managed account portfolios from dealer groups running established managed account solutions.
- Gain insights from these dealer groups on running well structured and efficient managed account portfolios.
3. Designing your financial planning firm's managed account service for success
We identify critical design decisions and typical choices; What sort of flexibility are platforms providing to assist planners?; Dealers / Principals relate how their managed account design decisions support their business strategy.
4.Revenue and pricing issues for managed accounts
- Adviser and AFS licensee lenses on managed account revenue
- How the incremental cost of managed accounts get funded
- Conflicts and conflicted remuneration
- Restructuring pricing to earn investment management revenue; Aligning role, competencies and value in pricing
15th June 2016 OneVue Adviser Webinar "Lessons we Learned"
This webinar addressed the subject of "Lessons we learned from tailoring a Managed Accounts program"
Adrian Rowley from Watershed Group and Adam Seccombe from Implemented Portfolios gave their respective insights into the do's and dont's for Advisers when running your own managed accounts program for clients based on their own considerable experience.
Adrian Rowley is Portfolio Manager within the Investment Team at Watershed with over 15 years experience in Portfolio Management
Adam Seccombe is the Chief Executive of Implemented Portfolios, an ETF and Managed Accounts provider.
Thursday 25 February 2016 IMAP Webinar sponsored by OneVue
"Robo advice + Disruption + block chain strategies and other disruption trends"
USA based Darlene DeRemer is well respected as commentator on influences and trends affecting the financial services sector.
More so, she’s on the board of ARK Investments which invests in disruptive technologies.
She was a co-founder of Grail partners in 2005. Grail has worked on over 250 strategic transactions involving asset management businesses.
Aside from advising companies, Darlene had 25 years working in US financial services industry strategic marketing, product design and the implementation of innovative service strategies with emphasis on outsourcing and technology