What is a DFM?
A Discretionary Fund Manager (DFM) is a group of investment experts who are responsible for actively monitoring and managing the underlying portfolio. Their role involves reacting promptly to market opportunities or concerns. By granting them discretion, you authorise them to make investment decisions without seeking your explicit consent. This arrangement aims to optimise your investments by maximizing returns and minimizing losses.
Why use a DFM’s services?
One of the key advantages of working with a DFM is their ability to act swiftly in response to market fluctuations. They possess the expertise and resources necessary to identify and capitalize on investment opportunities. In a dynamic and ever-changing market, the ability to react quickly can make a significant difference in achieving favourable outcomes. This proactive approach is designed to enhance your investment performance.
By entrusting your investments to a DFM, you are essentially delegating the decision-making process to a team of professionals. The discretionary nature of a DFM’s role means that they have the authority to make investment decisions without seeking your prior consent. This delegation of authority enables them to execute trades promptly, taking advantage of favourable market conditions. It also eliminates the need for time-consuming consultations and approvals, streamlining the investment process and potentially increasing efficiency.
Meeting your risk requirements
However, it is important to note that your risk profile remains a critical factor in the management of your investments. Should your risk tolerance or investment goals change, it is essential to communicate these changes to Path, as your financial advisor. Only after discussing and agreeing upon these changes with you will the DFM be notified and adjust their management approach accordingly. This ensures that your investments align with your evolving financial objectives and risk tolerance.
- Discretionary Fund Managers
- Market timing
- Minimising risk
- Multiple asset classes
- Portfolio insulation
- Pound cost averaging
- Principles of investing
- Children’s pensions
- Defined benefit (or final salary) pensions
- Defined contribution pensions
- Personal pensions
- Self-Invested Personal Pensions (SIPPs)
- The state pension
- Annual allowance and lifetime allowance limits
- Busting myths about pensions
- Increases to pension age and new normal minimum pension age
- Pension freedoms
- Pension withdrawal methods
- The lifetime allowance
- Delaying retirement
- Generating income from investments throughout your retirement years
- Importance of a retirement wealth check
- Retirement goal setting
- Retirement planning
- Reviewing your retirement plan
- Staggered retirement
- Taking control of your retirement plans
- What can I do with my pension?
- What happens to my pension on death?
Growing your wealth
Goals based investing
- Cash flow modelling
- Creating a financial roadmap
- Investment objectives
- Timescales and market activity and the impact of losses
- ‘What if’ scenarios
- Discussing legacy planning with your loved ones
- Inheritance Tax (IHT)
- Inheritance Tax Residence Nil Rate Band (RNRB)
- Lasting power of attorney
- Lifetime transfers
- Making a Will
- Preserving wealth for future generations
- Protecting your assets for the next generation
- Slicing up your wealth pie