The DFM Phenomenon
The popularity of DFM services among wealth managers and expat financial advisers has arisen as a result of various factors, including the advent of the canny client who demands a diversified portfolio that aligns with their wider financial objectives.
Of course, some investors may choose to invest directly into a multi-asset collective investment fund, but for others the portfolio service of Discretionary Fund Management may be a better match for their requirements.
This is partly because of certain regulatory and reporting features of a DFM service that make it easier for clients to view their portfolios for a transparent breakdown of trading and asset management. This aspect of the DFM service has been greatly aided by new technologies, and ongoing developments in this regard mean that is only likely that the client experience will be further enhanced over the coming years as technological solutions result in even greater transparency and efficiency.
And, of course, this efficiency is another key factor in the popularity of the DFM service. A DFM portfolio can be created and customised in a quick and cost-effective way that appeals both to advisers and their clients, saving time, money and unnecessary stress.
A Working Partnership
A DFM service is essentially a partnership between adviser, client and a fund manager. It is through this relationship that the client is able to develop a bespoke portfolio supported by two kinds of specialist expertise: the wealth planning experience of the expat financial adviser who understands the client’s needs and objectives and day-to-day portfolio management of the DFM firm who know and understand the markets.
The DFM Special Ingredient
In 2019 a survey of 289 financial advisers by Defaqto* found that as financial advisers have become increasingly more connected to DFM services, they have also become more demanding. However, despite the many technological advances that today benefit the DFM service, advisers still rate one key thing above all else: the quality of the people on the DFM investment team.
Access to the fund manager is a core feature of this personal requirement; a good fund manager should not only manage the portfolio effectively, they should also be available to speak with the adviser and the client directly. There is huge reassurance to be had from knowing that you can pick up the phone and speak directly with the person who is responsible for your money.
Blacktower – For Proven DFM and Trade Desk Services
Blacktower’s expat financial advisers can help with a range of services for investors, regular savers and retiring ex-pats. This includes access to an expert-led, bespoke discretionary fund management service supplied by industry experts Quilter Cheviot.
We look forward to assisting you in growing and managing your wealth. Contact us today for more information.
*DFM satisfaction survey 2019 – https://defaqto.com/advisers/publications/dfm-satisfaction-study-2019/
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
Portugal is an increasingly popular choice for South Africans who are looking to embrace the adventures and opportunities of expat life in the EU. Making the move can pay dividends as Portugal offers a favourable tax jurisdiction for financially prudent and high-net-worth expats. For example, by investing at least €350,000 in the country, and meeting other criteria, South Africans can secure residency on fairly straightforward terms, while also utilising the tax benefits offered by Portugal’s Non-Habitual Residency programme.