The technology being used to manage the investment proposition among large Financial Advice businesses and Discretionary Fund Managers (DFMs) is ripe for disruption.

This insightful report produced by our research partner NextWealth details some of the challenges of managing an investment proposition across multiple platforms and the need for more sophisticated tools to support information sharing to drive better investment decision-making.

The paper covers in more detail the following findings:

  • Firms use a wide range of tools and systems to research and manage investment portfolios but remain heavily reliant on spreadsheets and Word documents to track decision-making.
  • Inconsistencies in platform interfaces and functionality add risk and cost to managing portfolios on platform. DFMs are in some cases limiting platform availability to avoid compromising their proposition.
  • A limited fund universe and the inability to consistently access ETFs means that DFMs often have to compromise on their ‘best ideas’ and revert to more ‘vanilla’ versions of portfolios.
  • Data and MI to DFMs are limited making it difficult to report to internal stakeholders.
  • Financial advice firms struggle to get consistent cost and charges data from platforms due to inconsistent interpretation of MiFID II disclosure requirements.
  • Client journeys are often disjointed with custody statements lacking context on portfolios.
  • Large financial advice businesses that are able to pursue a single platform strategy see big operational wins.
  • Financial advice firms are looking for solutions to reach new client segments including younger clients and those with smaller portfolio values.

About the author

Justine Pattullo

Marketing Manager, EMEA

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