Many IFAs outsource investment decision-making

Tue, 10 Aug 2010

Some 19 per cent of IFAs choose to outsource their investment process to a discretionary manager, new research has shown.

According to a study carried out by independent financial research company Defaqto, more than 70 per cent of these discretionary managers specifically mentioned the potential use of alternative strategies.

Fraser Donaldson, author of the guide and Defaqto Insight Analyst for Funds, warned: "When outsourcing to a discretionary manager, an adviser should be satisfied that these managers are not just paying lip-service to their use of alternative investments .

"They should ask what percentage of portfolios are invested in alternative investments, and what success they have had in managing this asset class."

Meanwhile, F&C Investments' latest Question of the Month survey has revealed that three-quarters of investors expect the best returns over the next year to come from companies based outside the UK.

Further to this, the survey found that 60 per cent of respondents backed large companies to deliver superior returns to smaller companies.
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