News

The Reyker Approach to DFM for SIPPs

by Pippa Brown
11/05/2017
The Reyker Approach to DFM for SIPPs

Reyker’s been providing clients with discretionary funds management (DFM) for a large part of our 34-year history.  It stems from our stockbroking roots.  So it’s no surprise that we are still in the investment management business.  With our Real Assets Strategies investments, we are making these available to our own advised clients and a range of SIPP trustees, IFAs and other institutions.  Our approach is a little bit different to most DFMs.

Many people want the fund manager to make all the investment decisions.  And Reyker is happy to do that.  But in many cases we are working with well-regarded SIPP trustees, who want to be actively involved in the due diligence work and asset selection process.  We welcome this co-operative or partnered approach as we think it leads to a better service for underlying clients.  It also leads to better regulatory compliance and risk management for everyone in the investment chain, and we think that is important. It doesn’t add to the costs either.  Value for money is certainly very much at the forefront of our minds. 

There are of course sometimes consequences of moving away from standard, traditional model portfolios.  Our Real Assets model portfolios are designed for investors with a moderate, as opposed to high, risk appetite.  But even with a moderate risk portfolio overall, there needs to be a blend of securities, some riskier or slightly less liquid, with higher yields or growth potential, and others with less risk but less potential to add wealth.   

It is really important for investors and trustees to understand that together we must look at the portfolio as a whole.  If you look only at individual securities and take them out for risk reasons, then the portfolio risk and yield potential are both shifted and may not deliver against underlying client investor expectations.  So investment selection and allocation needs an intelligent approach. 

This is why we work with trustees and IFAs to ensure that they advise underlying clients properly on suitability.  And it is why we are very transparent and open about what we do. 

Just because an asset is listed as eligible in our model portfolios, does not necessarily mean we will have invested in it in any given percentage, or even at all.  As a stockbroker, funds manager and regulated custodian, we have the expertise and capability to adjust our approach to changing client needs and adapt our approach for example during risk averse periods, or to meet particular liquidity needs. 

It’s all about flexibility.  If you want, we will do it all for you.  But we very much enjoy working in partnership or active co-operation too.  Talk to our expert team.  You will be pleasantly surprised at the Reyker difference. 

You can find more information on our Real Asset Strategies on our website here.

Pippa Brown

Pippa Brown

Pippa is Reyker’s longest standing employee having been at the firm for over 30 years and is now Director of Sales and Distribution. With so many years in the industry she has her ear to the ground on any upcoming financial news. Pippa was also named Wealth Management of the Year at the 2014 City of London Wealth Management Awards and regularly attends industry events.