Fees charged by discretionary fund managers to platforms are set to face the same downwards pressure being seen elsewhere in the industry, Nucleus business development director Barry Neilson has predicted.
The number of DFM services available on platforms has ballooned in the past 12-18 months, according to analysis by Defaqto, in keeping with the trend for more advisers to outsource their investment decisions. Defaqo analysis released earlier this month show 37 on-platform DFM propositions were launched between 2012 and 2014. Neilson, however, said there has been “more noise than usage” among advisers so far. He predicts greater use will mean discretionaries are unable to avoid the cost pressures already faced by fund groups, advisers and platforms themselves. “There are a lot of a...
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