IFAs outsourcing investment 'due to knowledge limits'

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Almost a third of investment advisory firms are outsourcing discretionary management, with most citing knowledge constraints, a Close Asset Management study suggests.

The group's inaugural Adviser Insight survey found 28% of almost 400 IFA respondents now outsource fund management responsibilities, with almost three quarters (74%) of those acknowledging asset managers are better equipped to manage clients' investment portfolios. Elsewhere, 14% of respondents blamed time pressures for choosing to outsource, while the remainder cited a preference for daily active fund management, the delegation of responsibility and client choice. According to 28% of the IFAs surveyed, companies struggling to meet the change in requirements post-RDR and those without...

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