This section on Managed Discretionary Account (MDA) structure helps you familiarise with the regulatory framework through which we provide our service to you. We manage the wealth of our clients through this structure. The financial advice that we provide is part of the MDA service that we provide.
QuietGrowth provides an MDA service that enables clients to delegate the investment management and trading discretion for exchange traded funds and securities to QuietGrowth. This means QuietGrowth will invest in financial products on your behalf without prior reference to you for each individual transaction.
- Your Statement of Advice (SOA) and Investment Program
- Your Client Agreement
- Your Financial Services Guide (FSG)
- Link to Product Disclosure Statement for each ETF in your Model Portfolio
- Your MDA Application
Refer to the format of the Client Agreement of MDA Contract.
Advantages of MDA
Investing through an MDA allows you to retain beneficial ownership of the underlying securities. By the term beneficial ownership, we mean that you retain the benefits of ownership similar to the manner of you owning directly the underlying securities. The benefits of ownership include dividends and franking credits.
Comparison with other structures
A Managed Discretionary Account is a subset of managed accounts. Your QuietGrowth account is a Managed Discretionary Account. So, it is also a managed account. Note that your QuietGrowth account is not a managed fund.
Also, note that your QuietGrowth account is not a Separately Managed Account (SMA).
QuietGrowth is an online discretionary investment manager (ODIM). This is because of the MDA structure through which we serve the clients.
Multiple Portfolios and MDA Contract
You as a QuietGrowth client can invest in more than one portfolio, each having a different risk tolerance, and a different investment goal. Given this flexibility, it should be noted that all your QuietGrowth portfolios in your QuietGrowth account constitute one single Managed Discretionary Account (MDA) in your name.