The announcement was made at the first RSMR in the City investment conference in London yesterday attended by more than 100 advisers and fund sales people from 19 of the UK’s leading fund groups.
The range of RSMR ratings has been widened to cover the DFM sector and is built on Yorkshire-based RSMR’s experience in assessing other investment funds and the “processes and skills of fund managers.”
An initial list of six DFMs are rated including Cazenove and Standard Life Wealth with more in the pipeline.
Ken Rayner, joint MD at RSMR, said: “RSMR’s new rated DFM designation has been developed in response to adviser demand for additional clarity in the selection and use of DFMs. The rating is supported by our DFM matrix and factsheets, and our detailed DFM Profiles.
He added: “We have been assessing DFM services for a number of our clients for some time, and so have developed a robust methodology for use in this area. The nature of the DFM market means that a purely quantitative approach is not appropriate – indeed obtaining relevant performance and risk data is difficult due to the bespoke nature of the portfolios.
"This makes our qualitative-based approach all the more suitable as we look in detail at how the managers run the portfolios and base our assessment far more on this aspect.’
He continued: “This new rating has become the fifth ‘R’ badge of quality. Other new developments are in the pipeline.”
RSMR’s Research Hub’s free to view ratings also cover active single strategy funds, passive/tracker funds, multi-asset fund ranges, SRI funds and Investment Trusts.
More information is available at http://www.rsmgroup.co.uk/dfm/.