Our head of multi-asset investments, David Coombs, would rather be riding round in a DB7 than reviewing COBS 6.1ZA.8. But he shunned living the spy’s life years ago in favour of investments, so here we are. He outlines our new benchmarks for DFM business and explains why he thinks they will complete the mission.
One of the main concerns among advisers prior to adopting a discretionary fund manager is how the new structure will be viewed by clients, and how their relationships with those clients could be affected.
It is money that makes the world go round, or so the saying goes, and the value of Discretionary Fund Management (DFM) report set out to discover exactly how adopting a discretionary fund manager could hit the pockets of advisers.
A report looking at the value of Discretionary Fund Management (DFM) has unveiled clear distinctions between two camps of advisers, the adopters and non-adopters of a third-party investment manager. Yet, one important question remains, how do the two camps compare when it comes to investment performance?
Lifting the burdensome task of managing client investments from an adviser’s shoulders has an undeniable effect on the structure and goals of their average working week, according to the Rathbones Value of Discretionary Fund Management (DFM) report.
Examining the finer details of the Rathbones Value of Discretionary Fund Management (DFM) report over the course of its two chapters has offered unrivalled insight into the real impact a third-party investment manager has on financial adviser businesses.
The immediate impact of adopting a discretionary fund manager (DFM) on adviser businesses and clients is now clear to see as a result of the Value of DFM report, but what do we know about the effect over the long-term?
Among the main barriers to adopting a DFM cited by financial advisers it is the cost, the potential loss of control and the inability to justify their own fee to clients that crop up as the main issues.
Making the decision to enlist an external investment manager to manage client portfolios is, in all likelihood, a tough call for a financial adviser business - particularly if there are concerns that clients may react negatively to the change.