A recent article in Investment Week (you can read it here) reported on a NextWealth report that found more than two-thirds (67%) of financial advisers use a discretionary investment manager (DIM) that is not one of the big names in the industry.
It begs the question, why are the largest DIMs struggling to attract advisers?
As one of the smaller investment managers referenced in the report, I feel well qualified to give my views. Here are three reasons:
This is not something that happens within PortfolioMetrix. All our adviser partners have open access to our head of investments, Nic Spicer and his well-qualified team. They know that any queries will be looked at in a timely manner and can be confident they are getting the best of the team’s knowledge and expertise.
Smaller DIMs, on the other hand, have to work harder to stand out from the crowd. They are able to innovate more easily and can differentiate using other factors like service levels, technology, thought leadership and efficiency gains. At least, that’s how it is with us.
If you are an adviser, I’d love to know your views on this. Do you disagree with my views on the large DIMs? What do you like best about the DIM you use? How would you like to see DIMs differentiate vs their peers? Please get in touch via engagement@portfoliometrix.co.uk.