Behind the headlines: The real reasons advisers use DFMs and how outsourcing impacts their businesses

State of the UK DFM market

More than half of advisers have seen their salaries increase since using discretionary fund managers (DFMs), according to a report commissioned by Rathbones.

Out of these, more than a third have seen their income grow by at least 20%, and 23% have experienced at least a 10% pay rise (see tables, below).  The report, The Value of Discretionary Fund Management, collated data from 100 advisers and found DFM-using advisers' clients have grown in size by an average of 18.5% since they started outsourcing, with roughly one third of a firm's clients now investing more than £500,000 with them.  The team at Rathbones, who commissioned the CoreData report in Q1 2018, stated: "Over the last ten to 15 years, third-party discretionary fund management h...