Service and services - performance standards

Mike Turner - Assistant Research Manager for Funds and DFM

A DFM can adhere to a performance standard on a voluntary basis.

For those that do adhere to a performance standard, this can be an indication of the extent to which DFMs are prepared to demonstrate transparency and integrity as the function of a standards agency should be to ensure complete and fair representation of investment performance, which can be compared on a like-for-like basis.

Looking at our independent data, we can see that 55% of bespoke propositions state that they adhere to a performance standard. For direct MPS propositions, 34% state they adhere to a performance standard, while for MPS on a platform the figure is 38%.

This shows that DFMs are aware of how important transparency is, and as a result, we may see these figures rise in the future.