DFMs under fire for lack of 'unique' model portfolio propositions

Portfolios becoming increasingly concentrated

DFM portfolios are becoming increasingly concentrated, with the most popular underlying funds used in 15%-20% of vehicles, according to a study by the lang cat consultancy and CWC Research.

In a wider report into outsourced centralised investment propositions, the report's authors studied 349 DFM portfolios with more than 5,544 underlying holdings, which were then filtered down to only 771 unique underlying funds (after getting rid of fund name duplicates and treating multiple share classes and income/accumulation units as a single holding).   Its list of the top 20 most held funds includes seven UK equity income vehicles, two property funds, two Asia strategies and two fixed income products. Underlying unit success The most commonly held fund was the £7.5bn First Stat...