This CPD accredited DFM market update will keep advisers up to date on what’s happening in the market and provide fundamental data on more than 180 discretionary solutions.
Although corporate activity in this market has, on the face of it, looked relatively quiet over the last year, we are witnessing some longer term trends which point to the future structure and shape of the discretionary markets in the adviser space.
The importance of platforms to the adviser market investment propositions continues to strengthen, which in turn has led to discretionary managers examining their own strategy with this market.
The last five years has seen an increasing number of discretionary managers accepting, albeit reluctantly, that to succeed in the adviser market they have to make their investment propositions available on platform. The consequence of this is that they have to abandon their long held beliefs that retaining custody of assets is everything.
The previous year has seen the regulators reinforce their insistence on undertaking good due diligence, and this update reminds us what good due diligence looks like, helping advisers meet the expectations of the regulators and thus strengthening the likelihood of providing good client outcomes.
We are also seeing a relatively new addition to portfolio choice in the managed portfolio service space. With pension freedoms, income producing solutions are in demand. In particular those that pay out a natural income, leaving potential capital withdrawals to a minimum. We would expect income portfolio launches to continue.
As is often the case with the well-established discretionary market we are seeing a longer term evolution rather than revolution, but make no mistake, things are changing.
This DFM market update is accredited for up to 60 minutes structured CPD.