Frequently Asked Questions

An adviser can gain access to an array of investment options for their clients. A DFM has the capabilities to access detailed research for a large number of investment products and apply asset allocation that follows a proven methodology. The value to this approach is demonstrated when markets are volatile and where defined asset allocation and stock selection can have a positive impact on performance. A DFM Service also offers access to a broader investment universe. They can access investments that individuals and financial advisors simply cannot. The use of a DFM Service also means an adviser can dedicate more time to clients, generate new business, and benefit from the expertise of an experienced and highly qualified investment manager making the investment decisions.

Once an adviser has ascertained the client’s background, investment goals and risk profile, then a Discretionary Fund Management service may be the best solution for the client. Depending on the client’s investment amount and the level of investment knowledge, the financial adviser can suggest either a portfolio from a range of Fusion MPS portfolios suitable to client’s investment objectives and risk profile, or a bespoke service. The advisor needs to sign the Terms of Business with Fusion to have access to Fusion MPS portfolios or the Bespoke service.

Fusion’s Model Portfolios are currently available on a number of third-party adviser platforms, and we are in the process of onboarding with more. Please give us a call to discuss how we can make Fusion’s portfolios available to your clients. If you do not want to give advise on the suitability of the DFM services, we can introduce your client to one of our partner advisers who is familiar with the DFM landscape.

Fusion Portfolios are available via the following wrappers: ISA, GIA, SIPP, and Bond wrappers.

A client’s investments will be held in a custodian account which is chosen by the third party platform provider.

Fusion Asset Management offers a simple and clean fee structure that provides complete transparency. Value is a key consideration during the fund selection stage, so that the combined costs of the portfolios are kept at very competitive levels. Our Model Portfolio reports provide up-to-date information on total expense ratios of portfolio components and total portfolio costs to allow fair cost comparison to other DFM services. Our Model Portfolios cover a full risk spectrum so that you can select the portfolio best suited to your client’s risk profile.

Our Investment Management Charge:

Fusion Champions – 0.10%

Fusion Passive – 0.15%

Fusion Active – 0.25%

Fusion Optima – 0.25%

Fusion ProActive Planet – 0.30%

Fusion has set a £5,000 minimum initial order value to access the Model Portfolios and £250,000 to access Fusion’s bespoke services. The client can also top up their investment amounts on an ongoing basis.

Fusion publishes updated quarterly factsheets here. Third party platforms also offer individual client reports where the performance of the portfolios can be accessed.

Depending on the type of portfolio, Fusion applies different concentration limits per position. Risk-weighted model portfolios developed for small investment amounts have a higher limit concentration (15%) to minimize the trading costs associated with a large number of small positions. For bespoke portfolios which are designed for larger investment accounts, we have a lower position concentration limit (5%).

Fusion’s portfolios are rebalanced quarterly. Additional rebalance dates might be required in case of significant market moves to align portfolios to new market conditions.

To obtain a copy of your terms of business, please contact our investor relations team via dfm@fusionam.com or call us to discuss further.