MST Individually Managed Accounts
Professionally managed fixed income portfolios for wholesale clients.
The MST Individually Managed Account (IMA) service provides wholesale investors with a sophisticated alternative to traditional cash and term deposits. By facilitating direct beneficial ownership of a diversified portfolio of Australian bank and corporate bonds, the service enhances returns and liquidity. Investors benefit from professional fixed income management where the Investment Management Team actively rebalances holdings to optimise performance across interest rate and credit cycles.
The offering includes two core programs requiring a minimum five million dollar investment, alongside bespoke mandates for larger portfolios exceeding ten million dollars. The Conservative Income program focuses strictly on investment-grade debt, while the Income Plus program seeks higher yields by investing across the capital structure. Each IMA client enjoys full transparency through 24/7 online access, regular income distributions, and institutional-grade custodial services, all supported by independent compliance oversight from KPMG to ensure rigorous investment governance.
The IMA service offers wholesale investors the opportunity to earn meaningful improvements in returns and liquidity over Cash and Term Deposits through the direct ownership of a significantly diverse range of quality assets that include Australian Bank and Corporate Bonds.
How the IMA service works
Once you have chosen an Investment Program, the IMA Investment Management Team (IMT) will invest in fixed income assets according to the program’s mandate and replicate its model portfolio. The IMA IMT will rebalance your holdings in response to changes in markets and investment opportunities.
As an IMA client, you receive:
- Regular income payments (coupons) either reinvested or paid into your nominated account.
- The opportunity to subscribe to multiple Investment Programs.
- The option to transfer approved assets ‘in-specie’ into your IMA account.
- Full transparency, with 24/7 online access to your portfolio’s performance, valuations, transactions and income.
- Monthly and annual statements of portfolio accounts, and a monthly quarterly economic and fixed income market commentary from the IMA IMT.
- Custodial services.
- Compliance monitoring, supervisory oversight and independent audit of services by KPMG.
Investing with MST’s IMA Service provides the following benefits:
- Professional fixed income portfolio management by industry experts.
- Choice of two Investment Programs or a customised Investment Mandate for investments over $10M.
- Maximum diversification through the use of the DirectBonds service, independent of your investment volume and the Investment Program chosen.
- Direct beneficial ownership of the portfolio of fixed income securities via your own custody account.
- Cut down on administration as MST administers any notices and corporate actions related to your investments.
- Simple and clear fee structure.
- Investors can choose from two IMA Investment Programs, with a minimum investment of $1M, each designed to appeal to a range of investors’ product preferences, target returns and credit risk tolerances. Alternatively, Investors with a minimum of $10M can customise their Investment Mandate.
The Individually Managed Account Service provides investors access to a menu of products that combine the benefits of total return, capital stability and regular income with direct ownership and professional management. The minimum investment amount for the IMA service is $1M for each investment program, or $10M for a Customised Investment Program.
Conservative Income
Regular income through exposure to investment grade rated debt only. Conservative Income invests in investment grade rated senior and subordinate bonds only. Longer dated bonds form a key part of portfolios generating yield from credit and interest rates. The mix of holdings of fixed and floating rate bonds will shift through the interest rate cycle.
Income Plus
Regular income through exposure to both senior and subordinate debt. Income Plus has a broader mandate to invest across the capital structure, senior through to subordinated bonds, and across the credit spectrum to include investment and non-investment grade rated bonds. The allocation to select non-investment grade credits is based upon corporate credit strength. The portfolio credit exposure mix of rated and unrated senior and subordinate bonds will shift through the credit cycle.
Customised Investment Programs (For investments of $10m+)
MST’s IMA service offers the ability to create a bespoke fixed income portfolio based on your key investment objectives including liquidity, credit, duration, diversification and Environmental, Social and Governance (ESG) position.
The IMT team can provide a bespoke investment program including exposure to Government, Corporate, Bank and Asset Backed Securities in the form of fixed and floating rate securities.
The IMT will assist investors to achieve their required outcomes through a detailed Investment Mandate design phase.
*BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively “Bloomberg”)
“Investment available to Wholesale Clients only, no cooling off period
Investments in fixed income using MST Managed Income Portfolio Service (MST IMA) is only available to “Wholesale Clients” (within the meaning of section 761G of the Corporations Act 2001 Cth)). You may only apply for a Managed Portfolio Account by completing the Managed Portfolio Account Application Form. As Wholesale Clients, investors in the Managed Income Portfolio Service will not receive a product disclosure statement and will not have any cooling off rights. The MST IMA Information Memorandum is not a prospectus or product disclosure statement for the purposes of the Corporations Act and has not been lodged with the Australian Securities and Investments Commission (ASIC).
MST Financial Services ABN 54 617 475 180, AFS Licence No. 500557 (‘MST’) is authorised to provide general financial product advice only. As a result, this document, the MST IMA Information Memorandum, the Managed Portfolio Account Application Form and any information or advice, has been provided by MST without taking account of your objectives, financial situation and needs. Neither MST, nor any of its directors, authorised representatives, employees, or agents, makes any representation or warranty as to the reliability, accuracy, or completeness, of this document, the MST IMA Information Memorandum or the Managed Portfolio Account Application Form. Nor do they accept any liability or responsibility arising in any way (including negligence) for errors in, or omissions from, this document, the MST IMA Information Memorandum or the Managed Portfolio Account Application Form.
Any reference to credit ratings of companies, entities or financial products must only be relied upon by a ‘wholesale client’ as that term is defined in section 761G of the Corporations Act 2001 (Cth). MST strongly recommends that you seek independent accounting, financial, taxation, and legal advice, tailored to your specific objectives, financial situation or needs, prior to making any investment decision. MST does not make a market in the securities or products that may be referred to in this document, the MST IMA Information Memorandum or the Managed Portfolio Account Application Form. Investment via the Managed Income Portfolio Service is not a deposit with, or any other liability of, MST or any of its affiliates. It is subject to investment risk, including possible delays in selling your investments or repayment of withdrawal proceeds and loss of income and principal investment.
MST does not sit behind or otherwise guarantee the capital value or investment performance of your investments via the Managed Income Portfolio Service. Past performance of any product described in any communication from MST is not a reliable indication of future performance. No liability is accepted for any unauthorised use of the information contained in this document, the MST IMA Information Memorandum or the Managed Portfolio Account Application.
Since its inception, MST Financial has been committed to delivering in-depth analysis and actionable insights to help clients make informed investment decisions. In 2025, MST Financial expanded its offering by becoming an investment manager, further enhancing its reach and ability to serve a broad base of clients with tailored investment solutions.
MST Income, a division of MST Financial, provides high-quality, tailored Hybrid and Debt Securities services to Wealth Management firms and Institutional Investors, offering everything from expert insights and research to professional portfolio management with a focus on execution and implementation.
MST Financial is privately owned and not owned by any financial institution.
This is a significant point of differentiation as it enables MST Financial to transact an extensive and unrestricted range of interest rate securities and investments.
MST Financial has an Australian Financial Services Licence (issued by ASIC) and provides general financial product advice.
MST Financial maintains strict conflict of interest policies to ensure that the investment management team which manages the Fund operates independently.
Kieran joined MST in 2025 as the Head of Investment Management, Fixed Income Division. He brings more than 35 years of market experience, primarily as a fund manager responsible for investing multiple billions of dollars across a complex range of investment mandates. His deep knowledge of capital markets was developed through additional roles as a proprietary interest rate trader at a U.S. investment bank, as well as a debt originator, syndicator, and institutional (funds) client relationship manager. Kieran holds a BA in Accounting from Canberra University and is a former Chairman of the AFMA Debt Capital Markets Committee.
Garreth joined MST in 2025 as the Head of Unit Trusts – Fixed Income. He brings over 15 years of extensive experience in financial markets, including portfolio management roles with multi-asset class exposure. As Head of Fixed Income at Aberdeen Asset Management, he managed significant institutional capital across both domestic and global bond strategies, while leading a team of analysts and strategy specialists. Garreth has also served on internal and external Tactical Asset Allocation committees, and successfully launched and managed an Australian Dollar Income Bond Fund for clients of Asian private banks. He holds a Master’s degree in Finance from UNSW and is a CFA charterholder.
Megan joined MST Financial in 2025 as the Head of Individually Managed Accounts - Fixed Income. She holds a Bachelor of Science (Hons.) in Physics (Photonics) and a Diploma of Financial Services (Securitisation). Megan brings over 15 years of expertise in the Asia Pacific fixed income markets, combining portfolio management, trading, and quantitative analysis to support the MST Income Solutions division. Prior to MST Financial, Megan held the position of Portfolio Manager at FIIG Securities, helping to grow the managed account service to over 400 million funds under management.
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IMA clients each own a stand-alone Individually Managed Portfolio (IMP) managed by the IMA Investment Management Team (IMT) in accordance with the IMA Program selected by the client.
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All investment decisions for the IMP are made by the IMT in accordance with the selected program’s remit.
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The service currently offers two unique investment programs, designed to appeal to a broad range of investor appetites, and a third opportunity of customisation of investment mandates for investment in excess of $10M.
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All programs only invest in Australian Dollar denominated bonds and contain no derivative exposure.
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The IMA service has been in operation since October 2015 and has delivered a performance record of merit.
MST’s unique attributes include:
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Secondary market access to volumes less than $500k face value ownership via the ‘Direct Bond’ Service.
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Access to both external and in-house (MST Financial) research.
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Liquidity for investment grade assets via the interbank market.
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Liquidity for non-investment grade product via MST Financial distribution platform.
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Kieran Quaine is the Head of Investment Management Fixed Income at MST Financial and oversees activity of both IMA and Unit Trust Portfolio Management. He has over 30 years’ of extensive experience within the fixed income market, primarily as fund manager in charge of investing multiple billions of dollars across a wide range of investment mandates.
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Megan Romeo is the Head of IMA Portfolio Management. She has over 10 years’ experience in the financial markets, primarily, prior to the current role, as the Valuations Product Manager at S&P Capital IQ.
Refer to our website for an in-depth profile on our full team.
In addition, as a client of our Individually Managed Account Service, you will receive a monthly quarterly report outlining the investment manager’s future strategy and a commentary on recent economic events including drivers of current performance.
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Those assets within the IMA are still held in safe custody with MST as the custodian and JP Morgan as the sub-custodian.
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Assets within a client’s IMA are segregated from any and all other investor holdings, including the assets owned by MST Securities.
Conversely, within a trust structure, assets are pooled or aggregated, and investors own units in the trust. Their entitlement to ownership is not ‘direct’ but a share of the pool.
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Where an asset class is under pressure, and speculation that devaluation will continue, a ‘run’ on a trust is not uncommon. In such a period the Investment Manager may be forced to sell assets (that can be liquidated) at devalued prices to satisfy that percentage of unit holders who have demanded an exit. The ‘run’ can be self-fulfilling and deliver a devaluation that would not otherwise occur. Think of the GFC period. If you were in the minority, your valuation (of your share of the retained position) will be affected. But probably more significantly, the assets that are sold to satisfy liquidity may deliver an ‘unbalanced’ portfolio. In such events, liquid assets may be sold first, and residual less liquid assets may be retained.
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Conversely, during an equivalent period to that described above, holders of an IMA will not experience such a ‘run’ and can effectively determine their next move in isolation and for their sole benefit. That said, valuations may decline, but a crystallisation of the devaluation, and a subsequent impact of rebalancing the portfolio, is controlled by the individual owner.
It is worth noting that in circumstances where MST ceased to operate, or even exist, client assets held directly are protected because the assets are held in safe custody (with FIIG Securities as Custodian, with JPM as sub-custodian).
MST utilises FIIG as custodian, who in turn has appointed JP Morgan as sub-custodian. Your portfolio assets are held in an account in your name. You retain 100% beneficial ownership of your bonds. This means that your bonds are your assets at all times and do not form part of the assets of MST or the custodian. If FIIG as custodian or JP Morgan as the sub-custodian were to cease operations, your bonds will be safe and remain yours.
FIIG, as custodian, holds your assets as bare trustee either in their name or in the name of a sub-custodian or a Securities System (as appropriate). The beneficial interest in your assets is held by you. MST, FIIG and JP Morgan acknowledge and confirm that the beneficial interest in your assets held under custody in accordance with the Client Custody Agreement shall, at all times, vest in you. In that regard, either party are unable to affect the 100% beneficial ownership of your assets.
As a licensed custodian, FIIG Securities is required to maintain net tangible assets of greater than $10 million at all times.
A portfolio will contain a minimum of 20 unique names once cash is deployed within the initial 30 day period, before diversity will increase further, to match the preferred exposure of the sample portfolios. All programs provide the investor with the option to distribute income (coupons) to an external bank account, or reinvest.
In order of lowest to highest entry yield (and income), IMA Programs include:
‘Conservative Income’: is comprised of assets that are 100% Investment Grade. A maximum of 20% of that Investment Grade exposure can be ranked Subordinate in the capital structure.
‘Income Plus’: is our higher yield flagship investment program. It maintains a minimum of 80% Investment Grade assets and restricts the 20% capacity for Non Investment Grade Assets to Asset Backed Securities. Of the 80% Investment Grade exposure, a maximum of 20% can be ranked Subordinate in the capital structure.
Elements of these ‘off the shelf’ product designs can be utilised within customised investment mandates.
Fees for a Customised Investment Program are by agreement.
Custody fees are 0.11% for the first $5m and fall to as low as 0.06% for amounts over $5m.
Statutory Statement
This offer of scheme interests is available to wholesale clients only. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
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