'Can advisers justify bespoke DFMs amid cost of living woes?'

Of course, this is not to say that bespoke DFMs no longer have their place in the adviser toolkit. For individual clients with specific wants and needs they will still deliver value.

However, it would not be surprising if insourcing models start to become the default for advisers that want something more than an off-the-shelf solution, which strengthens the relationship with their clients at a competitive price point.

If, as Defaqto reports, adviser usage of bespoke DFMs has more than halved in the past few years, we should expect that trend to continue as more advisers seek to provide customised solutions at a lower cost for clients. 

Ben Peele is UK managing director of PortfolioMetrix