What we do.
Philo Capital Advisers provides managed account services to financial planning / wealth management firms inclusive of the three core services set out below. Philo can administer managed account services for those already licensed to provide such services, or can act as a 3rd party Managed Discretionary Account (MDA) provider for those who are not authorised to provide MDA services under their own Australian Financial Services Licence.
Managed Account Design
In our view, the optimal managed account strategy for your business is one where you design the service to align with and enhance your broader business strategy. Philo’s senior management can use their extensive experience to help you do this. Tapping into our skills can make this process easier for you and can help you deliver an outstanding experience for your clients.
Managed Account Operations
Outsourcing managed account operations to Philo can generate benefits for you and your clients. These benefits include:
Faster rebalancing of client portfolios, driven by expert portfolio managers of your nomination
Reduced operating risk / simplification of your business
Increased ability to focus on services more visible to clients
Ability to offer one managed account service across multiple platforms
Access to Philo’s experience in running sophisticated managed account services
MDA Licensing
Philo Capital Advisers has an MDA Provider authorisation on its Australian Financial Services Licence (no. 301808). Where an advice firm wishes to offer MDA services but does not have an MDA authorisation on their AFSL, Philo can act as the MDA Provider and take responsibility for the compliance obligations that come with this role.
What we do not do
Philo is not an asset consultant or fund manager. Philo works with asset consultants and fund managers nominated by our clients, subject to their passing our due diligence protocols. Nor is Philo a wrap platform. Our strategy is to complement the services offered by the platform community by offering discretionary portfolio management capability that can be implemented through existing platforms.
Where we “fit” in the market
Philo’s managed account services are designed to complement the role of existing services providers in the industry. To that end, advice firms using Philo managed account services can:
Use Philo’s Managed Discretionary Account (MDA) AFSL authorisation for service delivery or their own AFSL
Use their choice of portfolio manager, either an external asset consultant, an internal team or some combination of the two
Run the managed account service designed with Philo to suit their business in conjunction with one or more existing platforms. i.e. a single managed account service can run across multiple platforms and it is not necessary to move clients in order to offer them a managed account service.
Determine the branding they wish to apply to the managed account service
The choice is yours!
Most importantly, Philo’s knowhow can help you deliver your managed account as a seamless element of your overall client service delivery.
Philo's relationship with other service providers to your organisation, and how it impacts you, is shown in the diagrams below.
As can be seen in the diagrams above, Philo supplements, rather than replaces, existing services. If you are happy with your existing providers there is no need to change them and no need to disrupt your clients. Further, if your client wishes to withdraw from the MDA service, they can do so at any time at no cost and without creating a need to change platform. They simply revert back to the service model shown in the left hand diagram above.
Benefits to advice firms
The managed account service provided by Philo can deliver a number of benefits to advice firms. Which benefits would apply to you is a function of your business strategy and the style of managed account service you choose to implement. Potential benefits include:
Significant increase in operating efficiency
Material reduction in operating risk
The comfort of knowing you can adjust all client portfolios quickly and equitably as required
Increased client satisfaction
More sustainable revenue streams
Potential to receive a portfolio management margin where appropriate
Increased business valuation
Increased adviser and staff satisfaction
These are not theoretical benefits. All have been achieved by advice practices implementing managed accounts designed and managed by Philo's senior management.
If you are considering introducing managed account services to your business, or if you are finding your existing managed account services are not meeting all of your needs, please don't hesitate to contact us to arrange a confidential discussion.