The majority of IFAs, 60%, already outsource some client portfolios but 58% say they will increase this practice while just 5% are looking to reduce it, the research reveals. Tom Street, Director of IW&I said: “While the run-up to RDR presents a major opportunity for discretionary managers, we are likely to see a flight to quality. Advisers will want to ensure their clients continue to receive a best in class service that delivers a rigorous investment process and a tailored approach to building client portfolios.”
IFAs ranked assurance client relationships will remain intact as their number one concern when choosing a discretionary manager. In order of importance, other influencing factors in the selection process include: investment process, the provision of bespoke portfolios, track record, TER, proven track record of working with IFAs and online reporting procedures. Least important to IFAs are the strength of the manager’s brand and the size of the firm in terms of assets under management.
