Continued shift towards passive in MPS while costs decline

NextWealth finds 14% of MPS assets have moved from active to passive

Isabel Baxter
clock • 1 min read

Over the last 18 months, 14% of managed portfolio service (MPS) assets have moved from active to passive, according to NextWealth.

Its MPS Proposition Comparison Report found that as price pressure mounts, discretionary fund managers (DFMs) continue to allocate a larger share of assets to passive instruments. In the last year, 56% DFMs included in the report have increased their allocation to passive instruments. Only three have increased allocation to active. "The average across the industry is also influenced by the strong growth from DFMs that invest solely in passive," said managing director Heather Hopkins. The cost of owning an MPS continues to decline due to continued downward pressure on the operating ...

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 DFM & Model Portfolios

MPS: Would you trust AI to replace human decision-making?

MPS: Would you trust AI to replace human decision-making?

Firms increasingly exploring AI use to push gains even further

Tony Wilkinson
clock 26 June 2025 • 4 min read
RBC Brewin Dolphin expands MPS range

RBC Brewin Dolphin expands MPS range

Seven risk-rated portfolios combine active and passive strategies

Sahar Nazir
clock 23 June 2025 • 1 min read
'Real danger' of some MPS players running too many models

'Real danger' of some MPS players running too many models

‘The number of models they’re running can absolutely run away from them’

Isabel Baxter
clock 18 June 2025 • 3 min read