Likewise, it is imperative that a DFM keeps their financial adviser partners well informed with their views on market outlook and tactical portfolio positioning so that the advisers remain at the apex of the client relationship. When an adviser uses an outsourced investment solution, they do not want to be disintermediated from the process but kept in the loop and suitably empowered when meeting with their clients.
It is clearly vital that when major events impact investment markets the adviser understands the impact on the size of their client’s assets or yield profile of their retirement fund, as this could in stressed market conditions require a reassessment of the level of income they are drawing. The true value of outsourcing to a DFM investment manager lies in the benefits bought to both the adviser and the client, benefits which are clearly intrinsically linked.
Mark Coles is director, financial intermediaries at Tilney for Intermediaries, the discretionary fund manager
Key points
There has been exponential growth in income drawdown since pension freedoms.
There has been a refocusing of many adviser businesses around financial planning while outsourcing investment management.
Two-way communication is pivotal to a successful relationship between a financial adviser and his DFM partner
