Scottish Life extends DFM solutions range
Scottish Life has extended its range of outsourced discretionary fund management providers to give adviser access to low-cost, risk-graded investment options.
Lorna Blyth, investment marketing manager of Scottish Life, said advisers could get Cazenove Capital Management, Brooks Macdonald Funds, 7IM and Rathbones.
She said: “Outsourcing the investment process is a growing trend, centred around the provision of a consistent and robust investment process for different segments of an adviser’s client bank.
“However, there’s growing pressure from the FSA to ensure that the providers chosen for the outsourcing are suitable in terms of cost, servicing and other relevant factors, and that the approach taken is not ‘one size fits all’.
“Scottish Life’s governed portfolios has proved hugely successful in delivering a low-cost, risk-graded investment solution designed specifically for pensions. But we’ve always recognised that it may not be the right solution for all segments of an adviser’s business.”
Ms Blyth added that governance is something that should always be provided, saying that advisers have to be comfortable that, if they choose to outsource the investment process, the provider is doing the job they have been trusted with.
The funds are offered through the Royal London brand’s pension products.
Dan Clayden, director of Devon-based Clayden Associates, said: “This is an area we are researching. It has to fit the right client. It is basically an alternative fund strategy.”