2024 could see end of abnormal 'nirvana' period for MPS solutions

‘Stress test’ year could prompt ‘uncomfortable questions’ for advisers

Hope Coumbe
clock • 2 min read

Uncomfortable relations between clients, advisers and model portfolio service (MPS) providers are expected next year as thriving but stimulated markets take a turn, Shard Capital warns.

MPS investment strategies could be "under real stress" for the first time in 2024, according to the firm's Richard Bacon, with the Financial Conduct Authority (FCA) also likely to be placing pressure on cost and fee transparency. Bacon labelled the last year "a nirvana period" for MPS solutions - one characterised by happy clients, happy regulators, and successes for investment management. "Low-cost MPS solutions have thrived. Investors have been able to access a ‘managed' investment product, dominated by passives, at rock bottom fees and look thoroughly heroic," he said. "But this ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

DIY investment market hits £392bn; top five platforms still dominant

DIY investment market hits £392bn; top five platforms still dominant

'As more low-cost trading apps come to market, competition is intensifying'

James Baxter-Derrington
clock 26 February 2024 • 1 min read
Far from the Madding Crowd: An investment moment in time

Far from the Madding Crowd: An investment moment in time

'Our hunt for undervalued shares takes us away from the crowd'

Ben Preston
clock 23 February 2024 • 3 min read
Abrdn debuts exclusive MPS with BoE base rate aligned return aim

Abrdn debuts exclusive MPS with BoE base rate aligned return aim

‘We have spent a lot of time talking to advisers about solutions’

Hope Coumbe
clock 21 February 2024 • 1 min read