Therefore, ‘DFM lite’ should be a pooled investment proposition that is cost-effective, but with a professional fund manager attached to it, who has a proven track record. The ‘lite’ element should refer to the lower level of personal service and not the investment approach. But it should not relate to a restricted investment universe with poorer outcomes.
The sooner that distinction is made, the better.
Mike Webb is chief executive of Rathbone Unit Trust Management
DIFFERENT SOLUTIONS: WHAT ARE THEY?
● Discretionary fund manager (DFM)
In its purest sense, this option tailors a portfolio to suit an individual’s specific investment objectives.
● Multi-asset
Often used for clients with smaller amounts to invest than those who typically use DFMs, these solutions are not tailored in the same way as a full DFM but can meet a targeted outcome.
● Model portfolio services
These fall between DFM and multi-asset and are pooled solutions that are not a full discretionary service.
