But Wellian Investment Solutions’ Richard Philbin warns advisers against relying solely on short-term performance numbers when it comes to choosing a DFM.
Mr Philbin, who is chief investment officer at Wellian, says: “Historically, investment returns and short-term performance were considered to be far more significant factors in determining the overall success of a DFM portfolio. But in today’s turbulent market conditions, other factors such as risk profiling and asset allocation should form a far greater part of any due diligence process.”
Advisers may do well to heed his words, as this year looks to be no less turbulent than 2015 – the looming EU referendum continues to weigh on markets, while the prospect of Greek woes resurfacing and further economic data showing a continued slowdown in China threaten to unnerve global markets at any time.
The relationship between adviser and DFM should be able to outlive any short-term market turbulence.
Ronnie Binnie, head of business development at Standard Life Wealth notes: “What goes up must come down [and] investments will continue to have periods where performance is challenged.
“But the odds of great client outcomes are significantly improved where you have financial planners and DFMs working in partnership, focusing on their area of specialism with the client at the centre of their thoughts.”
Ellie Duncan is deputy features editor at Investment Adviser
