Brewin Dolphin is planning to increase the number of open-ended funds it recommends to clients by 25% in the coming months as it seeks to provide more income plays.
The wealth manager’s list of recommended funds currently stands at around 80, and roughly 20 new funds are slated for inclusion, according to group head of research Matthew Butcher.
“We are expecting our list to grow in size, to around 100 funds. It is there to provide meaningful choice,” Butcher said.
“We are looking to diversify across the regions within our research output in order to widen clients’ sources of income.”
The wealth manager meets over 500 fund managers a year as part of its selection process, which involves an initial quality screen followed by a four-stage process of performance analysis, risk and volatility analysis, style analysis and qualitative due diligence.
Brewins operates a restricted advice model in the post-RDR era; a move that has been mirrored by many of its peers.
However, unlike Brewins, others have scaled back their buy lists. Investment Week revealed last week Barclays’ wealth arm has cut its buy list from a sizeable 400 funds to around 100.
Other high profile firms to have moved restricted, such as Close Brothers, have no plans to scale back their own lists.
But the recent spate of fund soft-closures, coupled with underwhelming performance for other vehicles, is producing a continued decline in the funds recommended by the country’s largest execution-only platform.
The Hargreaves Wealth 150 now features just 105 funds; just three funds have been added to the list in the past 12 months, with 20 being removed over the same period.
The group’s head of research Mark Dampier told Investment Week last December he would “not be surprised” if the number fell below 100 this year.
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