This being said, there are plenty of advisers who look at the discretionary marketplace as an additional choice for their clients, as an alternative or more commonly complimentary solution to multi-manager.
Traded, segregated portfolios from discretionary managers will continue to grow as investment outsourcing generally matures but perhaps more at an evolutionary rather than a revolutionary pace.
Fraser Donaldson is insight analyst, wealth management, at Defaqto.
PLATFORMS AND DFMS
Several discretionary managers still argue that there is no need for a platform.
However the majority of assets, particularly unwrapped collectives, are available through advisers only via platforms.
Advisers have embraced this ‘risk-targeted’ approach and have looked to see if it can be duplicated on their platform.
Discretionary managers do run such portfolios on platforms but they are not well marketed.
