Independent financial researcher Defaqto has published a report claiming that 45% of advisers were outsourcing their investment propositions last year. And that, of that 45%, 51% were doing so via discretionary management services.
Discretionary Fund Management Market Update, published this week, confirms a significant growth in the numbers of advisers using DFMs, as an increasing demand for outsourcing solutions has prompted the evolution of new product types and growth in the overall number of products available.

Fraser Donaldson, Defaqto’s Insight Analyst for Wealth Management, commented:

“One of the biggest consequences of the Retail Distribution Review has been the number of advisers who have already, or are now looking to outsource their investment propositions. Defaqto’s last survey on the subject indicated an increase in the proportion of advisers who are outsourcing their investment proposition. Activity we have witnessed leads us to believe that this figure continues to increase.

“Discretionary fund management is still relatively new to large segments of the adviser market. As demand and interest continue to increase, so the solutions available continue to evolve and innovate. The choices and options within the market are already very different to what they were just three or four years ago so it is important for advisers to keep abreast of how this market is developing.”

The publication also includes a breakdown of Managed Portfolio Services and bespoke solutions currently available in the market.

Advisers can download the guide at



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