View more on these topics

Should advisers leave fund selection to the experts?



Five DFMs target adviser due diligence in new taskforce

Five UK discretionary fund management firms have joined forces to educate advisers on DFMs due diligence. The DFM Alliance, which will start free continuing professional development conferences in June across the UK, is made of representatives from Brewin Dolphin, Brooks Macdonald, Investec Wealth & Investment, Quilter Cheviot and Rathbones. The firms collectively manage over £130bn […]

Financial advice-planning-advice-cashflow-analysis

FCA warns DFMs could be used to hide investment scams

The FCA has warned that it is seeing more scams where discretionary fund managers are being used to hide investments in non-standard assets. As well as “first generation” scams where unregulated physical assets like property are put up for direct investment and “second generation” scams where these assets are concealed within a special purpose vehicle […]

The parallels between golf clubs and DFMs

Imagine you have a new neighbour who is a keen golf player and he wants to join the club you attend. He asks if you can help him obtain membership. He mentions his last club had recently dropped the handicap level and he was frustrated by the number of relatively novice golfers clogging up the […]

Vanguard launches D2C investment platform

Vanguard launches D2C platform in the UK with fees at 0.15 per cent Vanguard, one of the world’s largest fund groups, has launched its direct-to-consumer online platform for the UK mass-market investors. In October, Money Marketing first revealed Vanguard’s plans to launch the service as part of a “10-year plus strategy”. The new platform will […]

What triggers the MPAA?

Jim Grant – Senior Product Insight & Technical Support Analyst There’s sometimes confusion around what triggers the money purchase annual allowance. Find out what does and what doesn’t trigger the MPAA. The money purchase annual allowance (MPAA) is a reduced annual allowance that can apply to contributions to defined contribution (DC) schemes. The following table […]


News and expert analysis straight to your inbox

Sign up


There are 4 comments at the moment, we would love to hear your opinion too.

  1. The experts? I consistently beat DFMs when it comes to portfolios at less cost. Farm it out to DFMs and explain to clients that you haven’t a clue what they are doing and when it goes wrong still pick up the can. What a great business model.

  2. What a patronising twerp.

    Even if I was to consider using a DFM I would certainly not use one that basically called me an idiot and said I should leave it to the big boys who know better than silly old me.

    In my experience all the ‘depth of talent and resource’ at DFMs does is load cost onto the client portfolio and still get investment decisions badly wrong producing invariably poor returns.

    @paul barnard – well done on your portfolios beating DFMs but that’s hardly a proud boast is it given the opposition.

    • Horses for courses I think.

      If you have the time, skills and research capability then selecting assets and funds (Active and/or Passive) is fine. If not then DFM’s are a competitive way to achieve this.

      I am more about planning than product / asset selection and always tell my Clients not to thank me personally if there portfolio makes good returns because ‘WHEN’ the [portfolio goes doen I personally will not accept any ‘brick-bats’.

      Each to his own and just because this works for my company does not mean it is a template for success.

  3. I think it is pretty clear that adding layers and layers of DFM & Multi-Manager cost is not the answer.

    Advisers owe it to their clients to pick the right funds based the evidence for low cost, low turnover funds. Anything else is just marketing.

Leave a comment