Discretionary Management 

DFM survey 2017: Providers in the spotlight

DFM survey 2017: Providers in the spotlight

Money Management's extensive study of the discretionary fund management (DFM) industry has shone a light on the inner workings of the sector, five years on from the RDR implementation that spurred many advisers to outsource their investment decisions to such firms.

Research carried out by Money Management among more than 20 DFM firms, including all the largest players, lays out key details including the charges levied by providers on their offerings.

The survey also discloses the minimum investment levels required for clients to use different portfolios, as well as exploring the exact services each DFM firm offers, the investment approaches taken and other findings focusing on model portfolios and benchmarks.

The research, available online and in the latest issue of Money Management, comes in what could prove a challenging period for DFMs. In the wake of an RDR-induced boom for such business, industry members now appear divided as to whether growth has stalled and what can be done next if so. Discretionaries are also under greater scrutiny than they once were, in part due to cost pressures and the attentions of the FCA, while having to contend with a swathe of new regulations.

The study reveals the different approaches taken within the industry, but also points to the issues that DFMs, as well as advisers and industry commentators, view as the most pressing for the coming years.

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