Advisers reveal concerns about using DFM services

Rathbones research

Tom Ellis
clock • 2 min read

Almost two-thirds (64%) of advisers are concerned they would struggle to justify their own fees if they outsourced their investment offering to a discretionary fund manager (DFM), according to Rathbones research.

The study, which assessed the views of 100 advisers, also found one-quarter (27%) believed DFMs might try and steal clients from them, half thought they would lose control of the investment or value chain (55%), while three-quarters (76%) said they were worried about losing control of the cost. The advisers who use a DFM, however, said the quality of client contact, trust and performance improved with the use of an external investment manager. DFM users also said they spent one-quarter (25%) of their week meeting clients - compared with the 19% of non-users - while half (55%) said client...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Advisers expecting more of asset managers since Consumer Duty

Advisers expecting more of asset managers since Consumer Duty

‘We actually need to understand one another better’

Hope Coumbe
clock 28 March 2024 • 1 min read
Fears tech limitations could stall MPS on its upward trajectory

Fears tech limitations could stall MPS on its upward trajectory

‘There have been a few changes and challenges around growth in general’

Hope Coumbe
clock 27 March 2024 • 1 min read
Partner Insight: Beyond 60/40

Partner Insight: Beyond 60/40

Invesco
clock 27 March 2024 • 5 min read