With the effects of Mifid II unlikely to abate and other factors continuing to disrupt the DFM space, more winners and losers are likely to emerge, particularly if a handful of giant DFMs end up dominating the sector. For intermediaries, this could spell advantages such as lower fees. But consolidation brings with it a greater chance of homogenisation. 

Add to that the increase in innovation being sought by other players, and it all means a greater onus on due diligence for advisers who opt to outsource their investments in the years ahead.