The dangers of 'big name' fund concentration

The Retail Distribution Review (RDR) has resulted in a rapid rise of outsourcing – a trend we believe will grow at a rate well in excess of the broader retail market. At the same time, the regulatory antennae are firmly fixed on client suitability, compelling intermediaries to ensure client objectives are being met. This comprises three elements: the client’s capacity for loss; the agreement of an appropriate level of risk over a particular timeframe; and a portfolio that matches clients’ risk tolerances and meets regulatory requirements. If one supports the theory that market cycles ...