Friday, 03 April 2020 12:28
DFMs need to improve client onboarding - survey
Discretionary Fund Managers need to improve their client onboarding processes, according to a survey of adviser satisfaction.
The survey by industry data provider Defaqto found that client onboarding and client literature saw the biggest drops in adviser satisfaction over the past year. Both were down by 5%.
Defaqto said that while DFMs were improving satisfaction in some areas there was no room for complacency.
The study measured how satisfied advisers are with their preferred DFM providers.
Advisers ranked 14 service categories, ranging from quality of staff to investment, service, investment flexibility and other options.
Most categories were unchanged or showed minor change but client onboarding and the quality of client literature fell significantly.
The survey is available here: http://ow.ly/O8gk50z0EZL
Satisfaction results:
|
|
|
Weighted Satisfaction |
|
|
|
Satisfaction category |
Importance |
2019 |
2018 |
Change |
|
Quality of staff – investment |
1 |
88% |
89% |
-1% |
|
Service |
2 |
87% |
86% |
1% |
|
Investment flexibility – range of options |
3 |
89% |
88% |
1% |
|
Investment flexibility – range of assets |
4 |
88% |
86% |
2% |
|
Ease of doing business |
5 |
84% |
85% |
-1% |
|
Existing business administration |
6 |
83% |
85% |
-1% |
|
Quality of staff - administration |
7 |
83% |
83% |
0% |
|
Provider financial strength and resource |
8 |
84% |
81% |
3% |
|
Client on-boarding |
9 |
77% |
82% |
-5% |
|
Online facilities |
10 |
69% |
67% |
2% |
|
Accessibility |
11 |
71% |
73% |
-2% |
|
Quality of literature |
12 |
63% |
68% |
-5% |
|
Remuneration |
13 |
70% |
65% |
5% |
|
Provider brand |
14 |
71% |
70% |
1% |
Defaqto said overall adviser expectations were not being met in 7 out of the 14 service categories, including the top two service categories, quality of staff – investment and service.
Some 249 advisers took part in the survey which found that on average advisers use 2.5 DFMs and average client portfolio sizes had risen over the past year, with bespoke DFMs portfolios up to £500,000.
Pan Andreas, head of insight and consulting (funds and DFM) at Defaqto, said: “Overall it appears that DFMs are continuing to improve satisfaction in the adviser market. However, it shouldn’t be ignored that several categories have seen a fall in satisfaction and some are failing to meet expectations.
“On average, advisers use 2.5 providers for DFM services so the providers mustn’t become complacent, acknowledge the importance of adviser relationships and continue to improve their standards across the board.”
The most used DFMs, according to the survey, are shown below:
Source: Defaqto
This page is available to subscribers. Click here to sign in or get access.
Published in
Articles