JDFP - Diversity by Design

How do Platforms Work?

A platform is like a motor vehicle, is it a hatch back, wagon, or an SUV?

The platform you use is the style of vehicle, it has nothing to do with the engine in the vehicle, or the type of petrol used, its simply the shell you drive your money around in.

It is from this platform you can gain the use of some features, like does it have power windows?, 5 or 7 seats?, or central locking? These questions are answered in Advanced features of the next generation of Platforms

where we list out some of the features of a platform.

Retail Account

These are the original platforms for both superannuation and investment accounts. They tend to have only one type of engine available (or at most a very limited selection), they are very handy for specific tasks or a purpose.

IDPS or Wrap Account

These are the platforms for investments accounts (though some are available for superannuation), they offer an economically efficient option to having multiple investment vehicles under the one account, they allow access to wholesale investments, direct shares, term deposits, and a wide range of managed funds.

IDPS and Wrap accounts are administration systems that allow multiple engine types to drive your portfolio.

Master Trust

These are very similar to the IDPS/Wrap accounts above, but are more commonly used for superannuation, they still offer similar investment options and features, along with the combined administration.

SMA or MDA

Separately Managed Accounts (SMA) or Managed Discretionary Accounts (MDA) are pooled investment accounts, they enable you to trade shares between the pools and therefore reduce costs and any potential tax liability.

CHESS

Clearing House Electronic Subregister System (CHESS) is the vehicle used by the local ASX share market and share brokers to hold, trade, and track direct shares.

We research many platforms and frequently review existing platforms to ensure that they are still meeting the needs of our clients, some of the current platforms we use can be found here.