Wealth firms Brewin Dolphin, Brooks McDonald, Quilter Cheviot Investment Management and Evercore Pan Asset to sign up to a new discretionary fund manager calculator, which was launched by Selectapension.
Selectapension has launched the calculator in response to the growing trend in a post retail distribution review (RDR) world of advisers eliminating the risk of monitoring and switching pensions by deferring to discretionary fund managers (DFMs).
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The firm said the new tool has been designed to enable financial advisers to consolidate their work and have a greater choice of investments, which will save them time on research and reduce risk.
The firm focuses on how financial advisers are consolidating client banks and investments, indicating that the adviser community is simplifying their business models.
This will in turn effect legacy investments as DFMs can still pay introduction fees to financial advisers for additional investments but will need to alter their business models in a post RDR world.
The firm also draws attention to the shift in advisers moving from default funds to actively selecting funds. It also suggests that advisers are moving clients to more tailored pensions solutions and have an on-going commitment to monitor fund selection.
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By GlobalDataSelectapensions expect adviser dependence on DFMs to increase based on research from Investec Wealth and Investment on June 2013, which showed that 52% of advisers plan to increase their use of DFMs over the next 12 months.
Andy McCabe Selectapension managing director, said: "Managing client portfolios can be onerous and requires expertise, therefore is time-consuming and potentially risky.
"As financial advisers are choosing to place this risk with DFMs, they need the tools to help manage this process. Selectapension are working closely with DFM providers and are adding DFMs to our system during August.
‘Using advanced technology tools will help build a lasting beneficial relationship between advisers and clients," McCabe added.
