On top of these five companies a further seven firms have been five-star rated for either their bespoke, or their model portfolio services.
In rating the DFMs Defaqto looked at: the value of discretionary assets under management; the range of traditional and alternative investments permitted; minimum investment and withdrawal levels; accessibility through tax wrappers; back office integration capability; approach to fund manager rebates; and transaction and other administration fees.
The list of double-whammy five star DFMs comprises (in alphabetical order):
- Albert E Sharp
- Brooks Macdonald
- Close Brothers
- Principal Investment Management
- Standard Life Wealth
Other core features, in addition to meeting overall requirements, will be helpful in aiding a DFM to meet the highest level of rating: the ability of online valuations; the facilitation of in-specie transfers out, the provision of a consolidated income tax statement, the inclusion of a capital gains tax report.
Fraser Donaldson, Defaqto’s insight analyst for funds, said: "We have seen a significant growth in the number of businesses that are outsourcing to a DFM or are planning to do so in the lead up to 2013 and beyond.
"To achieve the highest level of rating, propositions will need to demonstrate a high degree of dedication to the intermediated market, flexibility, transparency and high levels of personal and online service,” he concluded.
