Crystal Wealth Newsroom
Crystal Wealth models – an answer to efficient portfolio management
One of Crystal Wealth’s specialties is their own Australian Financial Services License which includes provision of Managed Discretionary Account (MDA) services.
“An MDA service is essentially an arrangement where we manage an investment portfolio of assets for clients on a discretionary basis according to an agreed investment program that meets each client’s individual needs and objectives,” Veronika Kardasova, Operations Manager of Crystal Wealth says.
Under this service, clients have the ability to include the option of tailoring a specific portfolio to their needs or the option of utilising one or more carefully researched and monitored model portfolios. Both options can incorporate a selection of quality assets under the selected asset class options of cash, fixed interest, Australian shares, international shares, property and alternative asset classes.
The main difference between the tailored and model services is that under tailored service the assets are in the client’s name, while under model service all assets are held by a custodian and proportioned to each client’s holding. The holdings between model portfolios and the custodian are reconciled daily.
“It is the model option, which we call our Optimum service, that brings the clients the greatest efficiency and the fastest implementation of the investment changes,” Veronika Kardasova further says.
When the Investment Committee approves any asset changes to the models, the rebalance of the models is scheduled to bring all the portfolios using the models to reflect this change. The transactions are then efficiently pooled for all model portfolios and transacted.
Any change approved by the Investment Committee strictly abides by the Investment Program that varies for each model portfolio depending on the risk levels.
Tailored portfolios are reviewed individually to incorporate clients preferences.
“Each option has its own advantages and disadvantages based on a client’s personal circumstances. Our advisers can discuss the options and the respective benefits,” Veronika Kardasova summarises.