Start with a blank piece of paper... how does your model portfolio look?

Our Approach

We start with a blank piece of paper and a conversation. With an open mind – unencumbered by the restrictions imposed by the traditional advice model; licensee, APL, platform and product, we ask the Adviser; ‘how would you like your model portfolio’s to look?’

We then build a customised Managed Account Solution for their practice and their clients. We will collaboratively determine the most suitable structure and technology partner to deliver their Managed Account Offering.

Our Clients

Our clients tend to be Advisers who understand the need for consistency in their advice offering. They tend to recognise the advantages of active management for their clients’ portfolios as opposed to simply making changes at periodical reviews. They tend to have independent investment views. They appreciate there is a significant investment universe beyond our shores and seek global investment opportunities. They appreciate the challenges faced when trying to implement any thematic investment view.

The world inside of an eye
Your Investment Manager, Technology Provider & Licensing Structure Is There To Support Your Brand
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Considerations in building... your managed account for your clients

Investment Philosophy

At the core of every Adviser is a considered investment philosophy.

That investment philosophy will form the broad basis for your clients’ Investment Portfolio structure and ongoing management.

Staying resolute, true to the investment philosophy and mandate, particularly in times of volatility, is paramount. That investment philosophy might be an active asset allocation strategy, a blended portfolio of active managers, a passive index or core and satellite approach. Regardless of the mandate or strategy you devise, the greater question is; how do you deliver on that investment philosophy, across all clients, en masse, in a consistent and scalable manner?

As business owners, in our advice model we seek consistency, reliability, scalability, efficiency and flexibility.

Watershed will build your investment philosophy into models. We use technology to deliver that investment philosophy to your clients. Like the chosen technology partner, the licensing structure to deliver this outcome can and invariably will vary over time. What works today, will evolve and tomorrow’s technology will replace today’s. But what will endure and should remain resolute, is your investment philosophy.

Watershed partner with you to provide the most appropriate structure, licensing capability, technology partner, process and investment consulting support required to your investment philosophy to your clients via your consistent, reliable, scalable, efficient and flexible managed account solution.

The world inside of an eye
Articulate Your Investment Philosophy. Build The Model. Manage The Model. It’s Your Brand.
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Selecting an Investment Manager... and then a Technology Provider

Investment Philosophy

Does your Investment Manager support your brand or are you supporting theirs? As an independent financial adviser, you’ve built a business based on a level of advice, a service offering, a rapport with your clients and professional network. You’ve built your brand.

Managed Discretionary Accounts (MDA) - Service Not Product

As Superannuation is not a product, it’s a tax entity with rules and governance, a Managed Discretionary Account (MDA) is not a product, it’s an AFSL authority with rules and governance that gives the MDA Operator / Program Manager the discretion to transact on a clients’ portfolio without the need for ROA’s. The consent by the client to transact in a discretionary capacity has been given in the MDA Agreement, within clearly de ned parameters outlined in the clients’ Investment Program.
MDA’s invariably overlay the Managed Account. In this way, the MDA gives you the flexibility and efficiency to implement your investment view, whilst the managed account allows you to implement in a scalable manner.

Technology

We view technology as an enabler. Technology is there to support your investment philosophy, not to shape it.

The world inside of an eye
Your Investment Manager, Technology Provider & Licensing Structure Is There To Support Your Brand
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Watershed Funds Management... we build Managed Accounts

Watershed Funds Management

We are an independent funds management business owned and operated by highly- credentialed and passionate investment professionals.

Watershed is a privately owned company with its own AFSL that includes MDA.

Free from institutional alignment, we are a product and platform agnostic firm.

We view technology as an enabler.

Mission and Point of Difference

Though we offer a series of our own highly successful SMA portfolios, available to Advisers via platform, our main focus is working with Advisers to build and manage tailored model portfolios that reflect their investment philosophy, views and preferences. We see our relationship with our clients as one of collaboration, where our highly experienced investment team works alongside theirs.

Managed Accounts – we construct model portfolios for Advisers, on the platform of their choice. The construct of those models can contain SMA’s, Managed Funds, Exchange Traded Funds and Overseas Shares, as well as bespoke adviser or client driven investment thematics.

Asset Consultant – in constructing model portfolios, active tactical asset allocation is paramount. We provide asset allocation solutions, including establishment of investment committee for the practice.

Picture of a small world on a plant leaf
Your Investment Philosophy. Your Investment Manager. Your Managed Account - MDA, IMA, SMA
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Delivering your Managed Account... to You & Your Clients

Do you have an Investment Committee and Structure and if so, is it delivering the solution that you want?

What are your skills as an adviser or practice and what would you like to improve? What resources would help you deliver a better portfolio outcome for your clients?

As Advisers it is not always possible to have the time or resources to adequately review the increasingly complex and volatile investment landscape. Asset Classes valuation and return expectations, underlying sector outlook and managers, currency movements and the multiple structures and strategies of access, let alone underlying security selection.

We believe it is important to partner with a firm that can provide unbiased support, where you need it. Then there’s the challenge of how you go about implementing portfolio changes when required.

One of the greatest detractors of performance, arguably, is the inability to implement an investment decision quickly and en masse.

The question then is, what relationship do you have with your Investment Manager and or Managers?

Mission and Point of Difference

Though we offer a series of our own highly successful SMA portfolios, available to Advisers via platform, our main focus is working with Advisers to build and manage tailored model portfolios that reflect their investment philosophy, views and preferences. We see our relationship with our clients as one of collaboration, where our highly experienced investment team works alongside theirs.

Managed Accounts – we construct model portfolios for Advisers, on the platform of their choice. The construct of those models can contain SMA’s, Managed Funds, Exchange Traded Funds and Overseas Shares, as well as bespoke adviser or client driven investment thematics.

Asset Consultant – in constructing model portfolios, active tactical asset allocation is paramount. We provide asset allocation solutions, including establishment of investment committee for the practice.

Investment Committee

Piecing together a number of top performing investment products from various reputable investment Managers is one strategy, but if you’re to scratch the surface a little and question how all the various investment thematics within the whole portfolio interact with one another – you might find that contrasting styles might not be complimentary and in fact might be detrimental to overall performance.

Selecting and then working with an Investment Manager with expertise across asset classes to construct a whole of portfolio model, in a collaborative fashion with you the Adviser, might be the ideal solution.

Investment Committee Meetings

Our approach is one of an open door policy. An exchange of ideas. A desire to act in a timely fashion. Volatility is the new norm.

We hold quarterly investment committee meetings with each Advisory Group to go through their models, How they are structure, how they’re performing, and whether they are positioned appropriately for the current investment climate and in line with your investment philosophy.

We view ourselves as an independent funds management business first and foremost. Our advice is not constrained or influenced by factors such as licensing, ownership, pricing structures or product. We provide genuinely conflict free advice.

Client Communication & Reporting

The communication strategy will be customised according to your method of operation and brand strategy. Having the ability to manage portfolios actively provides better client outcomes and the ability to effectively communicate portfolio strategy to clients provides better practice outcomes.

Hands holding the world
Your Managed Account. Your Investment Committee. Your Client.
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