From Adviser Guide: Outsourcing fund management part 1
Q: How do I narrow my search for a DFM?
Finding a suitable DFM is a hugely important task for the IFA and one that has no shortcuts.
Not only will you be looking for a fund manager, Carl Lamb, managing director of Almary Green, said you will also need to identify an appropriate technology platform provider – it will be a tripartite arrangement with you having the final decision of which partners you will adopt.
Comprehensive research is the key.
Mr Lamb said any DFM you consider should be prepared to enter into an extensive dialogue with you and to provide a full and frank disclosure of any business information you request.
One useful resource is the ARC report, but coupled with this will be industry research, recommendations and face-to-face meetings.
Mr Lamb said advisers should arrange “beauty parades” with potential partners and ask the most challenging questions you can think of.
He said: “Listen to what the fund managers say about the platform providers, and vice versa.
“An ethos of flexibility and an open approach to future product development is also an important element to the new partnership.
“You may find that your clients need a different type of fund in the future and you want to be sure that your partners are prepared to listen to you and to deliver what you require.”