Rayner Spencer Mills Research (RSMR) has launched a discretionary fund manager (DFM) rating category and confirmed six portfolios have been awarded its stamp of approval.
The initial six DFMs to be awarded with the fifth ‘R' badge in the firm's ratings series were Brooks Macdonald, Cazenove Capital, Close Brothers Asset Management, Rathbones, Seven Investment Management and Standard Life Investments. RSMR said more DFMs were in the process of being assessed for the rating.
The Yorkshire-based investment research and fund ratings group, which rates products by either offering its 'R' badge of quality or not rating them at all, announced the launch of the DFM category at its inaugural ‘RSMR in the City' investment conference on 22 March.
The DFM category sits alongside RSMR's fund, socially responsible investment fund, fund range and investment trust ratings. The firm's joint managing director, Ken Rayner (pictured), had previously revealed one of its primary aims for 2016 was to advance its DFM research offering.
RSMR first announced it would be launching the new rating category in April last year. The move followed a survey that indicated advisers were confused about DFMs and were looking for additional clarity in both the selection and use of DFMs.
Rayner said the ratings would be supported by RSMR's DFM matrix and factsheets and DFM profiles, adding: "We have been assessing DFM services for a number of our clients for some time.
"The nature of the DFM market means a purely quantitative approach is not appropriate - indeed obtaining relevant performance and risk data is difficult due to the bespoke nature of the portfolios.
"This makes a qualitative-based approach all the more suitable, considering in detail how the managers run the portfolios, and basing assessment far more on this aspect."
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