DFM targets 'cautious' clients in growth push

DFM targets 'cautious' clients in growth push

The discretionary fund management (DFM) arm of advice firm Frenkel Topping aims to grow its assets by targeting clients who want their cash invested in a conservative way.

Richard Fraser, chief executive of the company, said the lessons learned from managing money for that type of client had informed how the DFM business operates.

The most recent accounts for the company, released on September 3 and covering the six months to the end of June 2019, showed the assets under management of the DFM business had reached £345m, an increase of 11 per cent on the same period last year.

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He said: “There are a lot of discretionary managers out there, but where I think we are different is that we have an experience and speciality in managing conservatively.

"A lot of the DFMs out there do a very good job at constructing portfolios for high and medium risk clients, but maybe don't have as much expertise as us in terms of managing money for clients with a lower risk portfolio.

"Because so many of the clients our advice business works with [are] clients who receive a payment, and, well, they won’t get a chance to get that payment again, so we have the experience of how to manage the money in those circumstances.

"I think that [is] the unique selling point of our DFM business.” 

Frenkel Topping’s financial advice business works exclusively with those who have received personal injury or clinical negligence compensation.

The company also owns a generalist independent financial advice brand, Orbiter, which it launched last year and which carries out expert witness work in divorces and wills and probate cases.

Frenkel Topping posted a profit of £596,000, and disclosed that it is presently in negotiation to acquire small advice firms.