Seven Investment Management has launched a managed investment service for advisers who are wary of discretionary fund managers meeting their clients.
This comes amid concerns from advisers that DFMs would get too close to their clients and ultimately poach their business.
Clients using the new 7IM’s service can tap into the firm's global investment approach, which invests across active, passive and alternative assets.
7IM said it will “remain in the background” by creating, managing and maintaining client portfolios, and giving advisers more time with their clients.
Robert Poulten, head of business development for 7IM, said: “Many advisers tell us they want to access 7IM's strategies but with full control of their client relationships, while maintaining ongoing responsibility for suitability.
He said the new service lets advisers to do that, while offering support on tax allowances and ongoing due diligence.
The group has also enhanced its model portfolio service by increasing the range of asset classes to include alternatives, and improving the client reporting system to give more transparency and explanation of what is happening in the portfolios.
Philip Bailey, investment consultant for Provisio Chartered Financial Planners, said the new service sounded quite similar to a multi-asset fund.
He also questioned how its investments compared to 7IM’s existing model portfolio range.
“I imagine 7IM is sensing that part of the market that isn’t willing to go for a traditional DFM service because they are fearful of them poaching their clients.”
He said it underlines the ongoing fear in the market that DFMs could end up jeopardising the value of the adviser’s business, adding however: “If you are fearful of a DFM stealing your clients, then why go to a DFM in the first place?”
katherine.denham@ft.com
