What is a Managed Discretionary Account?

Managed Discretionary Accounts, or MDAs, are a more efficient and direct model of managing a clients’ investments as compared to the traditional fund management structure. The client’s account is opened directly with a reputable executing broker partner. Bullioo Capital has chosen to partner with Pepperstone Group Limited (“Pepperstone”) as our preferred executing broker.

By entering into the MDA, the client is giving HLK Group permission to trade the account on their behalf. The trades will be directed by the underlying quantitative model of the respective MDA.

MDAs in Australia 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 Corporations (Managed Discretionary Account Services) Instrument 2016/968. MDAs are managed by a Managed Discretionary Account Operator, which in this case is HLK Group, who holds, and operates under, an Australian Financial Service License (AFSL) to provide MDA services. The Operator has appointed Bullioo Capital as its corporate authorised representative to provide advice to you in relation to HLK Group’s MDA service.

The key advantages of the MDA Service include:

Legal Ownership– The investor retains legal ownership of all portfolio assets.

Transparency– The investor can view and monitor the MDA performance, along with all the underlying securities, fees in live time. Automated performance/holdings report’s directly available from the executing broker platform ensures independence of reporting as well and transparency in the fees and costs involved in the investing strategy.

Portability– The investor retains the right to discontinue the services of the asset manager without being required to liquidate their investments.

Liquidity– The MDA offers investors access to their cash holdings on a daily basis, all other assets are only restricted by the exchange settlement timeframes, usually 2-3 days.

Refer to our Investment Program (IP) for more information.