If a firm is outsourcing to a DFM, the adviser should be confident that the DFM can demonstrate the following:
- A clear investment philosophy and robust investment process.
- A track record of consistent, cost-effective, risk-adjusted returns in different market conditions.
- Strong capabilities, governance and oversight.
- Good relationship management and great communications – particularly in challenging or volatile markets.
- Good support for the adviser in terms of expertise and collateral.
- Financial resilience.
Morrow adds: “Outsourcing also gives the adviser firm the option to procure different DFM solutions for different client needs, and to change/switch out DFMs if the service is no longer meeting the standard required, or client needs change.”
Article continues after advert
Ima Jackson-Obot is deputy features editor at FTAdviser
Page 3 of 3
