GAM, the London-based investment manager, has appointed Charles Hepworth and James McDaid to head up a new discretionary fund management offering for UK IFAs – joining a raft of firms developing such offerings in the run-up to the regulator’s Retail Distribution Review.

Hepworth and McDaid, who have been hired as investment director and investment manager respectively, will join GAM’s London office in the second quarter of this year. Both will come across from Quilter, where Hepworth has overseen the Morgan Stanley Smith Barney-owned firm’s managed portfolio service since 2001. McDaid is a senior associate within this team, responsible for the investment management of private client portfolios.

Hepworth will join GAM’s discretionary fund management investment committee for managed portfolios and report to Graham Wainer, global head of private clients and portfolio management. McDaid will report to Hepworth.

IFAs using GAM’s new service will be able to offer their clients one of two offerings: various risk-rated model portfolios or a customised portfolio service.

In related news, last week news emerged that Close Brothers Asset Management is to launch a new discretionary fund management service to be headed by fund manager Deryck Noble-Nesbitt.

The new Tailored Portfolio Service will offer clients various segregated portfolios designed to suit their individual investment objectives and risk appetite. The service will be open to clients with £250,000 ($396,000) or more to invest and will have a “clear and competitive pricing structure”, Close said.

Several firms have launched discretionary fund management offerings in recent times as the implementation of the RDR approaches at the start of next year. As a result of the RDR programme of refroms, many IFAs are opting to outsource elements of their investment management process to cope with new regulations and dedicate more time to dealing with clients.