DFM assets keep rising in Q1 amid a shift to active

Q4 2020 saw 11% rise in assets

Assets in discretionary model portfolios (DFMs) grew 11% in Q4 2020 and a further 5% in Q1 2021, according to the latest MPS Proposition Comparison Report from NextWealth.

The report, which profiled 27 DFMs, also found that model portfolio allocation shifted 1.7% towards active over the last six months. Schroders and 7IM increased their active allocation by as much as 10%, though Brooks Macdonald made a significant shift towards passives. NextWealth's managing director Heather Hopkins said: "Some DFMs have seen considerable growth driven in part by a steady and continued shift of assets toward discretionary MPS, continued price pressure and the launch of successful 'responsible' portfolios. "Looking forward we expect continued fee compression and new ES...