Assets in discretionary model or managed portfolio services (MPS) experienced strong growth in the six months to the end of Q1 2024. Asset growth was aided by favourable market conditions and a continued shift in assets toward discretionary MPS driven by the Consumer Duty and continued price pressure. M&A activity has also continued in the financial advice sector presenting both opportunities and difficulties alike for providers of discretionary MPS.

This report, MPS Asset Update June 2024, which is updated bi-annually, forms part of NextWealth’s research and insight into the investment propositions of financial advisers. It is based on data from 51 DFMs, more than in any previous report. We also profile more DFMs that are part of large advice firms.

NextWealth publishes market reports on adviser tech and financial advice business models. We moderate bespoke workshops and host quarterly events bringing together thought leaders in their field through our DFM council and Council for Fund Distribution. Email enquiries@nextwealth.co.uk for further information.

Who is the report for?

This asset and pricing update, along with our more comprehensive December report comparing propositions, is intended for people in strategy, proposition, distribution and marketing roles in asset management firms, platforms and DFMs. The report quantifies assets in discretionary MPS, compares propositions from leading providers and tracks changes over time. It is for anyone who wishes to understand the UK MPS market in detail, including for strategic planning, market assessments, board reports and broader general research purposes. The report can be used by:

• DFMs to benchmark their proposition against the competition, including pricing, platform availability, assets and asset growth.
• Asset managers to identify the fastest growing DFMs, to fine-tune distribution efforts, to better understand the ambition of their DFM partners.
• Platforms to prioritise DFMs to add to the platform, develop functionality to support DFMs in managing money on behalf of advised clients on platform, and better understand emerging platform DFM propositions.
• Financial advice businesses can use this report to understand the proposition and differentiators of their DFM partners and to benchmark their own outsourced investment proposition.
• Private equity firms and consolidators can use this report to identify takeover targets and the competitive environment in this rapidly changing market.

Methodology

The data in this report is collected through NextWealth surveys of financial advisers and employees of financial advice businesses, interviews with senior executives of DFM firms and data provided by 51 DFMs.

You can read more about the report by completing the form and downloading the sample report. Or get in touch at enquiries@nextwealth.co.uk to purchase a full copy.