Advisers should be aware that their clients may be unreasonably seduced by the idea that a bespoke discretionary fund managed (DFM) portfolio is 'created especially for them', according to one asset manager.
Asset Risk Consultants managing director Stephen McMahon, who spoke at the PIMs conference today, explained that although clients are often seduced by the idea of a bespoke portfolio, a unique portfolio is actually very expensive and often not necessary. "There are different grades of DFM and you would only get a truly bespoke portfolio right at the top end. If a client has just £250,000, forget it. "And it's not clear how valuable a truly bespoke portfolio is in most cases. Where the majority of investments are made with the same stocks, it is often not necessary to stray to the side...
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