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.
Mike Webb is chief executive of Rathbone Unit Trust Management
DIFFERENT SOLUTIONS: WHAT ARE THEY?
● Discretionary fund manager (DFM)
In its purest sense, this option tailors a portfolio to suit an individual’s specific investment objectives.
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.