Discretionary Fund Management

Aegis

gadgetmind wrote: »

He didn't create this thread and merely contributed to it. And I also have shelf-fulls of old journals with pages marked and some notes (now electronic) of where relevant articles are. Nowadays I use electronic subscriptions, but older stuff often isn't available this way.

I'm basically asking because on previous occasions he's mentioned surveys and articles and refused to provide details, so I'm somewhat sceptical when he posts something.

This is the first time he's actually provided a genuine citation that I can recall, and I'd actually be really interested in reading this if he has a link to it.

You'll forgive me, I'm sure, if I take the claim with a pinch of salt. For some reason, bigf doesn't strike me as the sort who reads behavioural finance journals on a regular basis!

Aegis

gadgetmind wrote: »

That's a reasonable chunk of change, and well into IFA territory, but perhaps not enough to interest most DFMs. This is no bad thing as you really do have to put a lot of trust in a DFM and this has proven to not always be a good thing.

How long do you want to invest it for, and with what goal in mind? What is your attitude to risk? (How would it feel if that £500k was down to £300k or less in a year's time?) Have you considered the IFA route, or learning how to manage your own investments, and if you're rejected these options, then for what reasons?

I reckon most DFMs would be quite keen to have a chat. Many start out at £200-250k minimum balance, though it's pretty important to get a handle on what the dealing costs will do at these introductor levels, especially if you have segregated portfolios (e.g. pension, direct holdings and ISAs) as many have increased dealing charges for small transactions (e.g. high cost up to £50k, lower cost for the excess over that). This can really hurt if you were hoping for holdings closer to £5k than £100k.

There do seem to be a few DFMs that incorporate trading costs into their annual fees or just charge a low fixed amount, but some of the fees levied are atrociously high, and won't be quoted as part of the AMC. As always, very important to check the costs at every step.

Totton

I am no expert on DFM etc but it might be worth taking a look at 'Full Circle' to get some ideas. https://www.fullcircleasset.co.uk/webapp/services.jsp

HTH,
Mickey

gadgetmind

Aegis wrote: »

There do seem to be a few DFMs that incorporate trading costs into their annual fees or just charge a low fixed amount, but some of the fees levied are atrociously high, and won't be quoted as part of the AMC.

I have just tried but failed to find an article I read this week regards some DFMs deciding that their clients urgently needed to be in structured products and then pocketing the rather healthy up-front fees.

It all strikes me as being far too much like asking a crocodile to recommend a safe place to swim.

Aegis

gadgetmind wrote: »

I have just tried but failed to find an article I read this week regards some DFMs deciding that their clients urgently needed to be in structured products and then pocketing the rather healthy up-front fees.

It all strikes me as being far too much like asking a crocodile to recommend a safe place to swim.

It's definitely worth asking what they do with initial and ongoing commissions they receive from providers, though obviously this will be less of a concern from next year.