What is the magic number for a DFM's collectives list?

DFMs

The DFM market has become bifurcated in its use of collective investment vehicles.

Some DFMs have fewer than 100 funds (typically researched by a centralised research team) while others allow their portfolio managers to pick their own collectives and require them to do the due diligence themselves. Many of the reasons for using a limited choice of collectives are unjustifiable in our opinion, such as a lack of resources or prescriptive models which limit portfolio manager input. Dissecting traditional asset classes generates approximately 70 sub sectors. This reaches well over 100 to accommodate specific client needs, such as ethical investors or charities, and APCI...