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 e...
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