Why more advisers are shifting to Managed Portfolio Services (and what it means for your firm)
Regulatory pressure and client demands are pushing more than 80% of UK advisers toward MPS. Here’s what happens next.
It’s no secret that the investment landscape for UK advisers has changed dramatically in the past decade. Increasing regulation, changing client expectations and a need for operational efficiency have all pushed firms towards more scalable, structured advice models. At the centre of this evolution, we see the rise of managed portfolio services (MPS).
Over 80% of UK advisers now use MPS in some form. As advisers look for more scalability to serve the next generation of clients, the rise of MPS represents a significant structural change in how investment advice is delivered.
Why MPS is gaining ground
MPS allows advisers to outsource portfolio construction and management to a discretionary fund manager (DFM), freeing up time to focus on client relationships, planning and strategic advice. For many firms, this has proven to be the most efficient and scalable way to deliver high-quality investment outcomes.
We can look to several factors that are driving this adoption:
Key capabilities now available:
- Operational efficiency: No more manual fund switching or complex rebalancing spreadsheets
- Compliance confidence: Clearly defined mandates, consistent rebalancing and better audit trails
- Client clarity: Professionally managed portfolios offer transparency, simplicity and performance accountability
- Business scalability: With investment management handled by specialists, advisers can serve more clients with greater consistency
How the MPS Universe changes the future
Beyond greater efficiency, the shift to MPS represents a deeper professionalisation of the advice model. Clients want to know that their investments are being managed in line with a clear strategy, backed by robust governance and regularly reviewed.
The modern adviser’s toolset continues to evolve. Comprehensive suites like Nexus for Financial Advisers, complete with FE Analytics, FE CashCalc and now, MPS Universe, are purpose-built to meet the needs of teams with an eye toward efficiency and growth.
At FE fundinfo, we see how firms that embrace MPS as a core part of their offering will be better positioned to demonstrate value and meet the rising expectations of both clients and regulators. MPS is increasingly the “new normal.” With the right tools, you can leverage this industry shift with a competitive advantage.