Can Philo Help You?
Philo plays a complementary role to a range of parties in the financial services industry. Here we list some of the primary groups that Philo can assist.
Financial Planners - new to managed accounts
Philo offers a distinctive proposition where we can help you design and implement the managed account service that will suit your business goals and preferred approach to portfolio construction. Philo’s business strategy is to offer MDA services that operate with existing platforms in use within adviser practices, rather than requiring advisers to change platform. Advice practices can also nominate asset consultants and / or fund managers to run the portfolios offered through the MDA service.
Not all AFSL holders with a MDA Providers authorisation want to retain operations in house. Some would also like to relinquish the obligations of being an MDA Provider, while still being able to provide MDA services to their clients. If either of these descriptions apply to you, Philo may be able to help.
SMA Users Seeking More Flexibility
We all recognise the benefits of Separately Managed Accounts over traditional ways of implementing and maintaining portfolios. However, an increasing number of firms are recognising that the extra flexibility that MDAs offer would benefit their firm. This is particularly the case where the planning firm needs to offer a broader range of model portfolio options or wants more streamlined and lower cost processes for bringing on additional portfolios in the future.
Asset Consultants / Portfolio Managers
If you are an asset consultant who wants to help your advice firm clients transition to managed accounts, we can help you. Philo is not an asset consultant or portfolio manager. We recognise that there are a range of investment philosophies and approaches being utilised in the market that can and do deliver sound outcomes. Our goal is to support our advice firm clients to implement their chosen approach in a way that is disciplined, efficient and cost effective.
For investment managers, ETF providers and others that represent a broad funds management capability and wish to provide an implemented portfolio solution to the market, a managed account offering via Philo Capital Advisers is an option worth exploring.
The evolution of the managed account market is seeing a growing appetite for managed discretionary accounts. Philo is already working with platforms that wish to facilitate MDA services and we are keen to work with others wanting to do the same. Philo can offer your clients 3rd party MDA licensing, MDA operations and consulting on how to design and implement a successful MDA service. Where necessary, we can help them identify and select asset consultants that will manage model portfolios for the benefit of their clients. A key attraction of the Philo approach is that it can be offered without the need for investors to move platform.
Philo MDA services offer material benefits for end investors. Our MDA services allow client portfolios to be adjusted or rebalanced more efficiently and equitably than traditional manual processes employed by most financial planning firms allow. These adjustments are based on the insights of leading investment professionals, nominated by your adviser and appointed by Philo. Accordingly, the MDA structure enables more dynamic management of your portfolio in response to market risks and opportunities. This is an important benefit.
Further, the discretionary nature of the service means that investors have less paperwork to deal with, while still having the comfort of knowing their portfolio will be managed in accordance with an agreed investment program. In addition, the governance model around the service and the transparent nature of the service, means that your adviser and their licensee are able to maintain a watching brief on the manner in which the MDA service is delivered. It is important to note that Philo only provides its MDA services via Australian Financial Services Licence (AFSL) holders that are authorised to provide personal advice. Philo is not a provider of personal advice services. If you are interested in MDA services and your adviser does not offer such a service, please feel free to contact us to be referred to AFSL holders that may be able to assist you.
To arrange a confidential discussion regarding Philo services and how we may be able to assist you, please contact us at your convenience.