According to ASIC’s RG 179.1 a Managed Discretionary Account is defined as, “a facility, other than a registered managed investment scheme (registered scheme) or an interest in a registered scheme with the following features:

(a) a person (MDA client) makes contributions;

(b) the client portfolio assets are managed on an individual basis by another person (MDA provider) at the MDA provider’s discretion, subject to any agreed limitation; and

(c) the client and the MDA provider intend that the MDA provider will use the client portfolio assets to generate a financial return or other benefits for the client”.[1]

Managed Discretionary Account is essentially a portfolio management service in which investors provide funds to an investment manager to manage your portfolio in line with your instructions.

By setting up a Managed Discretionary Account, you are able to remove the constant back and forward between you and the manager when it comes to the buying, selling or applying for investment in a wide range of investment products. So essentially, you are giving your money – or some of it – to someone else to look after.