Assets in discretionary model portfolio services or managed portfolio services (MPS) grew sharply over the year but that growth tailed off in Q1 2021. Asset growth was also uneven some DFMs have experienced significant outflows others have enjoyed considerable growth. Our analysis suggests growth is being fuelled by the continued shift in assets from existing adviser users as they transition more of their client money to discretionary MPS. Consolidation of financial advisers into larger businesses is also fuelling growth. Advisers in these firms are more likely to use discretionary MPS.

NextWealth published this bi-annual assets report, which forms part of NextWealth’s research and insight on the investment propositions of financial advisers, in July 2022. NextWealth also publishes research on adviser tech and the adviser market, moderates bespoke distribution strategy workshops and hosts a quarterly Forum for Retail Investment Distribution.

This MPS Proposition Comparison Report is available as part of a subscription. Reports in the series cover MPS propositions, charges, asset flows and market trends. To find out more get in touch or download the sample on the right.

Who this report is for

This market report 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 more, 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, VAT charging, compliance framework, 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 understanding 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 to position their pitch to suit the needs of this changing market.

This report is available as part of a subscription. Reports in the series cover MPS propositions, charges, asset flows and market trends. To find out more get in touch or download the sample by completing the form on the right.