Dalton Nicol Reid says review of MDA providers beneficial for advisers and investors

Tuesday, March 26 2013

Strong performance and new ratings confirm investment strategy and underpin commitment to investors.Strong performance and new ratings confirm investment strategy and underpin commitment to investors.

Independent Australian investment management company and pioneers in managed discretionary accounts, Dalton Nicol Reid said today that it welcomes the move by ASIC to review the MDA sector and its regulation.

ASIC has announced the review in light of the growth in the sector and to make it clear it that the investment program forming part of the MDA contract contains an investment strategy.

Chief Executive Officer and Director, Harley Dalton, said the move would help ensure the sector remains well-regulated and would give investors surety when selecting an MDA provider.

“As an operator of MDAs for more than 10 years, we have a very deep understanding of the issues and potential pitfalls of this type of investing. We believe that the review by ASIC will help create transparency for investors and ensure that all MDA providers are subject to the appropriate level of regulation, which will help build confidence in our markets.”

Mr Dalton said that investors had responded positively to Dalton Nicol Reid’s MDA offerings and that it remained committed to delivering strong performance to its investors.

“Our investment portfolios are frequently ranked among the top performers in their asset classes. In the past two years, we have been increasingly focused on the adviser and institutional markets. We are now included on most SMA platforms and we have received positive ratings from a number of research houses.

“We are very proud of this performance and look forward to further strengthening our relationships with the adviser and institutional markets.”

The Dalton Nicol Reid Australian Equity High Conviction portfolio recently received a new rating from Lonsec, the first time the research house has rated the group.

Lonsec said Dalton Nicol Reid “offers a robust and highly repeatable investment process that has been a proven outperformer across the investment cycle. Moreover, Lonsec notes the team is highly aligned with the long term success of the Model Portfolio, with the majority of investment staff owning significant equity in the business.”

The Report also stated that Dalton Nicol Reid has a well-evolved awareness of the specific risks of running an SMA model portfolio. “To date, Lonsec believes the Manager has implemented best-practice processes and controls to mitigate these risks, albeit in a rapidly-moving area.”

Lonsec has initiated coverage of the Model Portfolio with an “Investment Grade” rating and will be looking to build growing conviction in the Manager when the Model Portfolio is reviewed “in-cycle” in the third quarter of 2013.


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About Dalton Nicol Reid

Dalton Nicol Reid is an independent Australian investment management company that delivers client-focused, quality investment solutions to institutions, intermediaries and high net worth investors. The basic foundation of the business is to our clients’ needs first and provide them with an unparalleled level of service, be they institutions or individual investors.

Dalton Nicol Reid has a rigorous investment process proven through various market cycles and our client-oriented Individually Managed Accounts (IMAs) and Separately Managed Accounts (SMAs) solutions are pioneering developments within Australian financial markets.


IMPORTANT NOTE: This information has been prepared by DNR AFSL Pty Ltd ABN 39 118 946 400, an Australian Financial Services Licensee, Licence Number 301658. Whilst, Dalton Nicol Reid has used its best endeavours to ensure the information within this document is accurate it cannot be relied upon in any way and recipients must make their own enquiries concerning the accuracy of the information within. This document is not intended to provide you with personal advice and in providing this information, Dalton Nicol Reid has not taken into account your particular investment objectives, financial situation or needs. You should assess whether this information is appropriate for your particular needs, either by yourself or with your adviser. Dalton Nicol Reid expressly disclaims any responsibility or liability to anyone who acts or relies upon anything contained in, or omitted from, this document. Past performance is not indicative of future performance. Total returns shown are based on Dalton Nicol Reid’s model portfolio and have been calculated before taking Dalton Nicol Reid’s fees into account. No allowance has been made for taxation.
LONSEC DISCLAIMER: The Lonsec Rating (assigned September 2013) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445. The Rating is a “class service” (as defined in the Financial Advisers Act 2008 (NZ)) or is limited to “General Advice” and based solely on consideration of the investment merits of the financial product(s). In New Zealand it must only be provided to “wholesale clients” (as defined in the Financial Advisers Act 2008 (NZ)). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold DNR Capital product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria.

For further information regarding Lonsec’s Ratings methodology, please refer to our website at:



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