What is the difference between DFM and normal adviser firm practices?

Discretionary Fund Management (DFM) is a form of investment management where trading decisions are made for clients at the portfolio manager’s discretion. Under non-discretionary investment management firms, trades must be discussed and approved by all clients before taking place.  The main difference with DFM is that the authority is given at the beginning of the relationship; with this we can act more effectively on behalf of our clients when situations require it, without the need for written consent each and every time.  This means, we can maximise opportunities on our clients behalf which in turn delivers peace of mind, especially in the current volatile markets and our clients know their investments are being proactively monitored and managed.

What does the new status as a DFM mean for clients?

All clients who engage with a firm or adviser expect a return on their investments.  The majority ofadvisers can offer a DFM proposition to their clients, but this is usually outsourced to a third-partysource.  As with any outsourcing, this can cause further complexities.  At Moyes Investments, we do not need to outsource as because are qualified to offer DFM internally direct to all of our clients.  This way we can further reduce any associated risks and still offer our clients a highly professional and personal service.

How does this work?

The advisory model can be difficult for many in terms of rebalancing portfolios and being nimble in changing markets. Moyes Investments have taken the huge steps to be qualified ourselves in an effort to combat these problems. Utilising a DFM service can bring efficiencies and help to reduce portfolio slip, among many things. 

It allows Moyes to manage the financial planning strategy for our clients on an advisory basis and whilst monitoring investment markets and performance to optimise returns on a discretionary basis.  Because there is no ‘lag period’ waiting for clients to give permission to switch funds, a DFM client gives autonomy for Moyes Investments to act move swiftly in changing markets (as consent has already been given).  This permission helps us to keep on top of the investment management for each and every client and we believe this will be additional value to them.