Fidelity FundsNetwork: Advisers move to outsourcing post RDR

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A survey conducted by Fidelity FundsNetwork has revealed around 60 per cent of advisers feel regulatory change has led to an increase in outsourcing their investment portfolio management.

The survey reveals advisers expect to increase their use of managed funds and model portfolios as a result of the retail distribution review.

Fidelity head of UK retail sales Ben Waterhouse says: “As advisers continue to enhance their fee based customer proposition, the demand for outsourced investment solutions gathers pace.”

The research found 51 per cent of advisers are looking to increase their use of model portfolios and 47 per cent are looking more at managed funds following the arrival of the RDR. Only 14 per cent are looking to outsource more to DFMs.

On the other hand, bespoke portfolios look set to take the biggest hit, with over a third of advisers indicating that they would use these less in the post-RDR environment.

The survey, which polled over 200 advisers, also asked how important it was to them for their platform to offer its own managed service.  Some 59 per cent considered it either as very important or important – indicating that advisers value an on-platform managed service.

FundsNetwork head of sales Paul Richards says: “The survey results show that advisers feel that they are under a significant amount of pressure to meet new regulations and, as a result, are looking to utilise services such as managed solutions and model portfolios.

“It is therefore crucial that both platforms and providers offer access to these types of solutions as they can help advisers build a robust, cost effective and future proof business model.”