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Model portfolios and DFM services

With the increased use of model portfolios and Discretionary Fund Management (DFM) services, we are continually improving the services we provide to both advice and DFMs firms.

Here you’ll find out all you need to know about:

  • How advice firms can set up and manage model portfolios and use defined models from DFMs.
  • How DFMs can create, amend, publish and transact across their portfolios within our secure online portal.

We do not charge for this service, although the DFM may do so.

Our service offers DFMs the ability to create, amend, publish and transact across their portfolios within our secure online portal.

Interested in partnering with us? If you are considering becoming a DFM partner on our platform, please get in touch by sending us an email.

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Using our model portfolio service

Our service allows DFM firms to perform the following actions: 

  • Create and manage models.
  • Publish models to multiple contracted adviser firms.
  • Rebalance client accounts in bulk across multiple adviser firms and align other account attributes such as regular savings plans.
  • Report on all client accounts associated with models and the related adviser firm.
  • Download version history for the DFM model.

Access to our model portfolio centre is through a log in and DFM firms can manage which users use the site.

Full details on creating, editing, publishing and rebalancing models can be found within our guide.

The following videos are also available to DFM firms:

Recent enhancements to the service

  • To increase efficiencies and reduce administration, we now offer split fees to advisers and DFMs.
  • With recent industry changes to DFM fees, fees can now be set up with or without VAT.
  • Along with previous improvements to MI, we now offer an optional client quarterly portfolio statement which allows DFMs to add their own commentary.
  • DFMs can opt into a service that automatically notifies clients of a 10% depreciation in the value of their account(s) in a reporting period (calendar quarter).

Other changes to be aware of

  • We can now pay fees directly to you for accounts that are on the latest version of client management.
  • Your fee will be paid monthly on the same date as adviser fees, which is on or around 25th of each month.
  • Some advisers may not have added a separate DFM fee to client accounts, as they may have included this within their own fee (as previously everything was paid to them directly). Advisers may need to audit their existing accounts on DFM models and ensure a separate DFM fee has been set against each one in order to allow us to pay you directly.
  • Going forward, if an adviser adds one of your models to an account, entering your fee will become mandatory even if they enter zero. Similarly, your fee can only be entered if the account is linked to one of your models.

Important Note

Corporate Accounts, Pension Trustee Accounts and Trusts that remain on our old platform administration systems are not eligible for direct DFM fee payments. A separate DFM fee can be entered online but this will be added to the adviser fee and all paid to the adviser. You will need to continue collecting your fees manually from the adviser for these account types.

Setting up and deducting the fees

  • Your fee rates continue to be set by the adviser firms for each underlying account. You are not able to set up or amend fees on client accounts. Any changes must be made by the adviser.
  • The fees are calculated by taking a daily average of the account value and then working out a monthly average – the fee is based on this. This is deducted from the client account in the week following the month end and paid to you on or around the 25th of the month (same as the adviser fees).
  • Your fee is deducted in the same way as Advisers Ongoing Fees. The default is for the fee to come from cash within the account. If there is no cash or insufficient cash available, then it will move to unit deduction. The adviser can choose if this is from the largest asset holding or they can nominate a specific holding within the account. Alternatively, they can choose for fees to come from the client’s Cash Management Account.
  • Modal portfolio and cash management: There are 3 options when running models on our platform —  Download now

Discretionary Fund Manager Report

This report provides clients with a full breakdown of each account managed by a Discretionary Fund Manager. We have produced a guide to this report, which can also be used with clients. It covers:

  • Who receives the report
  • The purpose of the report
  • Transactions (money in and money out)
  • Fees and charges

Frequently asked questions

How can DFM fees be updated?
How are fees audited and reported?
Do you offer a 10% depreciation reporting service?
Can VAT be removed from fees?
Can we set up new users with online access? If so, how?
How do we unpublish model portfolios from an adviser firm?
How does cash work on the platform?
What cash alternatives can we use on the platform?
How do we request a new asset to be set up on the platform?
How long does it take to add new share classes and assets on to the platform?
What type of investments are available on the platform?
Can exchange-traded assets, Investment Trusts and direct shares be added into a model portfolio?
Do you have any restrictions for pensions held for clients who are under 18?
Can you ringfence/restrict access to assets on the platform?
How are fees deducted?
What charges apply?
How do you treat suspended funds within our model portfolios on the platform?
Is it possible to place a single switch if we needed to? If so, how long does the process take to complete?
Are rebalance trades aggregated on the platform?
How are exchange-traded investments traded on the platform?
Will the underlying client be subjected to any charges for trading into an exchange-traded investment?
What happens with regular withdrawals or contributions?
Will a regular savings plan collection impact a rebalance?
Do we need to be aware of any periods during a month when we cannot rebalance models?
What are the rebalance timelines on the platform?
How do we check for clients in older model versions or a closed model?
Do you provide quarterly valuation statements to end clients?
What is your 10% performance notification approach?
If a rebalance fails/delays, either due to error or trade queues behind other client transactions, how will we be informed?
What Reports & Management Information are available to DFMs?

Related content

List of DFMs available

With the increased use of model portfolios and Discretionary Fund Management services, we are continually adding to the list of DFMs available on our platform.

Investment Finder

A helpful tool you can use to search for all our investment options, including funds and exchange traded investments.

Awards and recognition

Our commitment to building long-term relationships with firms has earned us a number of industry accolades and top ratings.