MPS assets grow by a third in 12 months as costs halve

Its bi-annual MPS tracking study found that MPS costs tumbled by almost half in three years, from 1% to 0.54%. Growth is being powered by strong markets plus a shift from advisory and bespoke discretionary models, the report stated. This is being fuelled by the Consumer Duty which is leading advisers to outsource investments. Fee pressure is on the ongoing charges fee (OCF), with the average OCF shrinking from 75bps in 2021 to 36bps in September 2024. NextWealth found that some of the shift of fees relates to the rapid increase in use of passive options. The percentage of assets in...