The vast majority of financial advisers are now appointing discretionary wealth managers to run clients’ investments, a trend which has ballooned with the increasing popularity of model portfolios.A survey carried out by support services firm Threesixty found 87 per cent of the 144 advisers questioned currently use the services of a discretionary investment manager, either through third-party platforms or directly.
This is up from 78 per cent a year ago, indicating the increasing shift towards discretionary managers. Standard Life’s model portfolio service was the most popular discretionary scheme, with 15 per cent of advisers using the offering. Transact and Parmenion came in second with just under 10 per cent of advisers using their model portfolios. Model portfolios have varying levels of risk and aim to be an efficient way of investing money by managing a number of strategies within one offering. However, half of the financial advisers questioned use a model portfolio service that is not managed by these seven well-known DFMs, which also include Novia, Elevate, Ascentric and Seven Investment Management.