Does discretionary management make sense?

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Outsourcing investment to a DFM service can make sense for IFA firms but they have to go into the relationship with their eyes wide open, says Harry Kerr

Whether a client is in the accumulation phase of their retirement plan or post retirement and taking income through an invested means such as drawdown, being able to effectively manage the client's investments is essential for the advisory firm. The ongoing stock market volatility experienced since the financial crisis in 2008, including some quite dramatic falls has driven this message home. More than ever, clients want their investments to be managed to capture the upside and protect against the downside. One increasingly popular trend is to outsource investment management to a disc...

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