Many boutique managers have the research capability to comprehensively assess under-researched areas of the market, such as private equity where pricing is inefficient and companies trade at large discounts to net asset value. There are a number of such opportunities for dedicated, experienced fund managers to exploit.
Looking beyond the brand names can provide access to expertise in diverse asset classes that will provide meaningful returns in a range of investment environments.
Charles Hepworth is an investment director and a member of GAM’s managed portfolios investment team
Key criteria for DFMs
From a report called Never Mind the Quality, Feel the Width on outsourcing investment solutions by CWC Research and The Lang Cat, which surveyed 45 industry professionals.
• Performance
• Methodology
• Charges
The report shows that these are the three most common criteria for selecting a DFM, although perceived client need, or preference, cropped up frequently in discussions. Charges dominated the arguments against DFM use, according to the research.
