Increase in assets managed by DFMs11 February 2016 Back to results
The Platforum UK Adviser Guide suggests 10% of on-platform assets are managed by discretionary fund managers (DFMs), and that proportion is set to rise.
This trend has been driven by adviser demand for efficient investment services that let them focus on their strengths: client service, financial planning, and tax. DFM services come at a cost but there are a host of benefits.
The benefits offered by DFMs
As investment experts, DFMs focus their time on researching the investment market, and the depth to which they explore options and monitor portfolios is difficult to match for many financial advisers.
Your client grants the DFM investment permissions at outset, so you won’t need to request consent from the client for every trade. This makes the portfolio management process more efficient and more responsive to market dynamics.
This leaves you more time to focus on building client relationships and working out the financial plan that’s right for each client.
Finding the right platform
Making sure the relationship works well for both parties means that platforms need to invest in the services used by DFMs, so they can use their expertise to best effect.
That’s exactly what we’ve been doing on our Aegon Retirement Choices platform. In the last year, we have done the following:
- Added 488 new investment options, taking the total to over 4,000, including OEICS, ETFs and investment trusts. This gives DFMs the flexibility they need to build and change their portfolios.
- Our model portfolios service is automated and can be managed by DFM’s in bulk across multiple client and adviser firms. The service includes an automatic rebalancing capability to help maintain the desired blend of investments.
- Aegon can make separate payments to both the adviser and the DFM.
- There are now 16 DFMs you can choose from with Aegon, including Brewin Dolphin, one of the UK’s largest. The full list is here and we plan to expand the range further.
A winning combination?
If you decide that a DFM partner is the right fit for your business, then Aegon’s platform technology will make the process easy for you.