APRIL 2021


Register with PP

Newsletter, Jobs & Event Alerts


Advisers want more from discretionary fund managers

26 March 2019

Adviser satisfaction levels towards discretionary fund managers rose in 2018, but their expectations are rising, according to a new survey by Defaqto.

The financial information group said the results showed satisfaction levels improved across all but one of fourteen categories in 2018, reversing the previous year’s trend that saw 10 out of 14 experience a decline.

Yet, despite this upward shift, Defaqto’s research also revealed a rise in the level of service advisers have come to expect.

Top of the importance league for advisers was quality of staff – investment, which, despite still falling short of expectations, rose 5% last year, marking one of the most significant improvements. In second place, service improved 2% year-on year, while investment flexibility – range of options ranked third with a 2% improvement.

In contrast, provider band, which ranked thirteenth in terms of importance for advisers, slipped 1% in 2018.

Pan Andreas, head of insight and consulting, Defaqto, commented: “Advisers are getting more demanding in their service expectations and while discretionary firms are certainly improving, there’s still work to be done.

“Four of out of the top five categories in terms of importance still fail to meet adviser satisfaction expectations. The results should serve as a warning that firms should be mindful of adviser requirements and not become complacent.”

In addition, the study revealed that 60% of investment business done on an advisory basis was multi-asset, with 40% allocated to single asset portfolios.

Professional Paraplanner