Knowing your multi-assets from your DFMs

This article is part of
DFM - December 2014

Therefore, ‘DFM lite’ should be a pooled investment proposition that is cost-effective, but with a professional fund manager attached to it, who has a proven track record. The ‘lite’ element should refer to the lower level of personal service and not the investment approach. But it should not relate to a restricted investment universe with poorer outcomes.

The sooner that distinction is made, the better.

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Mike Webb is chief executive of Rathbone Unit Trust Management


● Discretionary fund manager (DFM)

In its purest sense, this option tailors a portfolio to suit an individual’s specific investment objectives.

● Multi-asset

Often used for clients with smaller amounts to invest than those who typically use DFMs, these solutions are not tailored in the same way as a full DFM but can meet a targeted outcome.

● Model portfolio services

These fall between DFM and multi-asset and are pooled solutions that are not a full discretionary service.