NextWealth has published its annual MPS Proposition Comparison report. This report offers a unique view of the competitive landscape and propositions of leading providers of discretionary MPS.

The MPS Proposition Comparison report forms part of NextWealth’s research and insight on the investment propositions of financial advisers. NextWealth also publishes research on the rise of segregated mandates in retail, moderates bespoke distribution strategy workshops and hosts a quarterly Forum for Retail Investment Distribution. Email enquiries@nextwealth.co.uk for further information.

What did we find?

In this report, we observe a notable trend in the growth of adviser platforms compared to the growth of discretionary model portfolio services (MPS).

• Discretionary MPS grew a robust 12%, demonstrating its capacity to capture a larger share of an expanding market.
• By contrast, adviser platform assets grew 9%, indicating a slightly slower pace of expansion.

While the overall market pie is expanding (by 9%), discretionary MPS has managed to secure a larger slice, outperforming the broader adviser platform market. Discretionary MPS remains a strategic growth driver within the wealth management sector.

Who is this report 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 better understand the UK discretionary MPS market, 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, proposition, platform availability, assets and asset growth.
• Asset managers to identify the fastest growing DFMs, to fine-tune distribution efforts and 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 to understand the proposition and differentiators of their DFM partners and to benchmark their own investment proposition.
• Private equity firms and consolidators to identify takeover targets and to position their pitch to suit the needs of this changing market.

Methodology

The results presented in this report are based on data requests from DFMs, interviews with representatives of those firms, surveys of financial advice professionals and our knowledge and expertise on the UK financial advisers and platform market.

• Interviews with 28 representatives of DFMs operating MPS on platform.
• Data requests completed by 41 DFMs.
• Pricing analysis was conducted across 313 portfolios from those DFMs.
• Survey of 244 financial advice professionals, conducted in July and August 2023.
• Survey of 40 financial advice professionals in October 2023 on compliance frameworks underpinning discretionary MPS.

What we heard about last year’s report?

“The depth and quality of this report with the excellent research that has gone into its construction is highly valuable for anyone with a distribution, marketing or product interest in the UK Wholesale market with a focus on MPS or indeed the IFA/Wealth Manager market in general.’ – Michael Beveridge, Head of UK Intermediary Distribution, BNY Mellon Investment Management

“We recently purchased NextWealth’s MPS report and it has quickly become a valuable resource for Tatton. It covers the MPS market objectively and comprehensively providing the level of insight we are searching for. In particular, it charts the growth of this maturing market and the breadth and depth of propositions. We appreciate NextWealth’s interpretive analysis and the honesty of the tables. Having reviewed fully and thought about what it means for Tatton, our thinking is challenged and we are able to be better informed in decision making from here.” – Justine Randall, Sales Director at Tatton Investment Management Limited

“NextWealth’s research on the discretionary Model Portfolio Service (MPS) market has provided valuable sector intelligence for Legal & General Investment Management (LGIM). It has helped shape our MPS product offering whilst ensuring our future strategy remains aligned to client’s needs. NextWealth’s insight into the current MPS landscape combined with both Heather and Mark’s experience, helps make sure our conversations with clients are both current and value add to their businesses.” – Paul Measures, Head of Intermediary sales, LGIM.

 

You can complete the form to the right to pre-register for a report sample. The full report is available to purchase. Get in touch with enquiries@nextwealth.co.uk for details.