View more on these topics

BAM bases new DFM on five risk-graded portfolios

Berry Asset Management says its new discretionary fund management service is a more concentrated version of the bespoke multi-asset portfolios it has been running for wealthy clients for 30 years.

The firm created its new platform-based DFM around five risk-graded model portfolios that IFAs can access through the Novia platform from £1,000. The portfolios dovetail with Novia’s risk ratings and are constructed using the same team-based investment committee that is responsible for the bespoke service.

BAM says in the run-up to the implementation of the retail distribution review, IFAs have said they like the bespoke service but wanted something to offer clients who could not meet its £250,000 minimum investment. The new portfolios span defensive, cautious income, balanced, growth and aggressive risk profiles.

Not all investments that are appropriate for the bespoke service are suitable for the new DFM. When constructing the new portfolios, BAM has to take issues into account such as liquidity and offshore tax implications and says the eligible assets for a bespoke investment account are not always allowed in an Isa account. The company also says that because the new DFM is catering for IFA clients with smaller amounts in a market where costs need to be competitive, it cannot offer the additional benefits that bespoke clients receive, such as a reporting service.

Chief investment officer Mark Robinson says: “A lot of firms are embracing multi-asset investment now but we have been doing it a long time and that ticks a lot of boxes for advisers. They like our performance and they like the things we are buying. The model portfolios take the investment risk out of their hands and all the worry that goes with it.”

Recommended

4

Former Langbar chief jailed for misleading the market

Former Crown Corporation, later named Langbar International, chief executive Stuart Pearson has been found guilty of making misleading statements about the asset value of the company. He has been sentenced to 12 months imprisonment and disqualified as a director of a company for five years. A confiscation hearing has been adjourned until August 1. Pearson, […]

FSA cancels permissions after firm failed to conduct report

The FSA has cancelled the permissions of London investment adviser Omagis Capital for failing to be open and honest in its dealings with the regulator. The FSA says Omagis breached its rules because it failed to pay a skilled person to conduct a 166 skilled person report, resulting in the review not being undertaken. The […]

6

FSA orders lenders to improve broker vetting

The FSA says it is concerned lenders are not properly vetting mortgage brokers before accepting them onto their broker panel. In a thematic review, published today, looking at mortgage fraud committed against lenders, the FSA said lenders should improve the way they manage their relationships with brokers. The paper says: “In the past few years, […]

1

PRA could introduce new wind up mechanism for insurance firms

The Prudential Regulation Authority could introduce a mandated winding up mechanism for insurance companies if it decides current arrangements are not adequate. Since the financial crisis the Bank of England has introduced the Special Resolution Regime for winding down banks which forms a part of the new supervisory approach of the PRA to banks. However, […]

Boosting our annuity strategies

Targeting annuity purchase in lifestyle strategies isn’t anything new but we’ve just lifted the bonnet and injected an enhancement shot into the end-point of these solutions. The recent volatility has shot short-term volatility into equity markets and painted a very turbulent backdrop but we’re also equally faced with a stressed fixed interest environment. This can […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com