Investments  

DFM publishes adviser checklist

Discretionary fund manager Wellian Investment Solutions has published a checklist on its website to help advisers choose a discretionary fund manager.

According to Wellian, the number of DFM firms operating in the market has grown substantially in the last few years, which has in turn, made the decision over whom to partner with increasingly challenging for IFAs.

The checklist aims to help advisers avoid common pitfalls when choosing a DFM and provides five simple and practical tips for identifying a quality firm of investment managers to work with.

Article continues after advert

Topping the list is ‘one size definitely doesn’t fit all’ which urges advisers to consider DFMs of all sizes.

Following this is ‘understand the portfolios: prepare your own due diligence questionnaire’, ‘endorsement from a trusted source’, ‘don’t attempt to cut corners: look for value, not cost’ and to ‘look beyond assets under management’.

Chris Mayo, investment director of Wellian Investment Solutions, said: “The growing burden of increased regulation and compliance has meant that advisers are progressively looking to outsource where possible.

“This has resulted in a larger number of DFM’s operating in today’s market; providing advisers with plenty of choice.

“However, it has also meant that many advisers are now finding this decision even more challenging and initially overwhelming. For that reason, we hope that this consolidated checklist will act as a handy guide for advisers who have decided they need to outsource.”