FASA 2025
Discretionary Fund Manager

Discretionary Fund Manager

Earlier in November this year, rumours surrounding the suggested inheritance tax plans in the Autumn Budget 2025 were that government changes to inheritance tax “could kill off modern pensions”, according to Baroness Ros Altmann, former pensions minister.

The Budget plan is that from 2027, most unused pension funds and death benefits would be included in a person’s estate for IHT.

What this would mean for discretionary fund managers is a lot of new work trying to navigate the complexities of this area to protect their clients, and it may be very stressful for both clients and advisers if such regulation comes into force.

There is also discussion surrounding inflation and whether it will be higher or lower, with mixed views in the industry at present.

For many discretionary fund managers the challenges that higher inflation will present are also at the forefront of their work.

As usual, DFMs will need to put their clients first when navigating these challenges, and with the ever-increasing shift to ethical portfolios in the industry, clients will remain content with the work DFMs do to protect them.

Top of the DFMs this year was YOU Asset Management, which places a strong emphasis on ethical investing.

In their quarterly review for this period, YOU Asset Management said: “The Ethical mandates are constructed to have all of the underlying investment managers signed up to the Principles for Responsible Investing, so that the portfolio can be mapped across to the UN’s Social Development Goals.

“There are many markets where this is difficult to achieve such as in emerging markets, where there may be more reliance on old heavy industry and fossil fuels and questions over labour rights.

"It becomes very difficult to marry the PRI’s principles to these regions at their current point in the development cycle, but this may change with time.”

Shane Balkham, client investment director, YOU Asset Management, said that the organisation is “entirely focused on the client and producing the best possible outcomes for them”.

He added: “We have three model portfolios with an ethical focus; cautious, balanced and growth.  We apply the same investment philosophy as we apply for our funds and other MPs, albeit these portfolios tend to be less diversified due the nature of the inbuilt constraints.”

Magnus Financial Discretionary Management also got five stars, followed closely by True Potential, with EBI Portfolios getting five stars and the Most Improved accolade. Altogether there are 10 five-star winners this year, compared with seven last year.

In the four-star category there were also 10 winners this year, including Invesco, Quilter Cheviot and M&G Wealth Investments. This follows six winners in the DFM category in 2024.

Gregg Lang, chief executive officer at True Potential, said: “Our foremost strength lies in our unwavering commitment to putting clients at the centre of everything we do.

"Since our inception in 2007, True Potential’s mission has been to revolutionise wealth management by leveraging technology to empower clients to take control of their financial futures and financial advisers to maximise their productivity.

“This mission continues to guide us today, and we have consistently delivered on this promise.

"Our diverse yet unified team enables us to remain agile, continuously challenging ourselves to innovate and exceed expectations.

"We strive to be pioneers and disruptors in our field, proactively anticipating future trends and the evolving needs of our clients and advisers.

"Our dedication to service excellence is evidenced by our Trustpilot rating of 4.9 out of 5, based on nearly 18,000 reviews, demonstrating that we deliver on our commitments to both service and support.”