Fund pickers on the wane as advisers choose model portfolios, Platforum finds

The number of advisers using model portfolios has increased to its highest level in the first quarter of 2012 ahead of the retail distribution review (RDR), according to The Platforum.

Research by The Platforum found that 48.3% were using model portfolios during the first quarter of the year, increasing from 41.4% in the fourth quarter of 2011.

Fund pickers dropped to their lowest number on record, with just 25.9% of advisers picking their own funds, down from a high of 37.2% in the third quarter of 2011.

The number of advisers using discretionary fund managers also increased to 10.7% in the first quarter of the year, compared with 10.4% in the final quarter of last year. (article continues below)

Both those opting for multi-manager and distributor influenced funds (Difs) dropped to 14.9% and 0.2%, respectively. In the final quarter of 2011, 16% had opted for multi-manager funds and 1.5% for Difs.

The Platforum used a sample size of 77 respondents.

To find out more, visit The Platforum’s website here.