It also says one of the key questions for advisers is whether or not to outsource to discretionary managers or carry on managing clients’ investment portfolios themselves. In its latest survey of advisers using platforms, Defaqto found 51% are already outsourcing some or all of their investment process with 26% outsourcing to a discretionary manager, now the most common outsourcing route for platform users.
Fraser Donaldson, Defaqto’s insight analyst for funds, said: “RDR has meant that most, if not all, adviser businesses are reviewing their strategies in preparation for 2013 – and many will conclude that delegating investment decisions to a full-time investment specialist will be in the best interests of their clients.”
He added that advisers need to ensure any discretionary they choose will give them access to a suitable range of investment types.
To this end, Defaqto found a large variation in terms of what different discretionary managers offer with, for example, 93% offering cash, 60% offering equities and fixed interest, while only 31% offer access to property.
When it comes to alternative investments, 70% allow structured products, 62% hedge funds and only 38% use private equity.
All of this information is now available to users of Defaqto’s own web-based product research system, Defaqto Matrix.
