DFM

Question 1

Benefits of DFM

Answer 1

• provides expertise currently lacking
• will invest based on their atr ‘s and objectives
• will provide access to funds not available to private investors
• will make use of isa/CGT allowances
• potential for outperformance
• will provide regular statements

Question 2

Drawbacks -DFM

Answer 2

• expensive
• returns may not justify charges
• they may not like lack of involvement
• David may have sentimental attachment to INV trusts
• could experience poor customer service
• may invest in areas D & J are not happy with