MPS fee decline slows as pressure flattens out

Average total costs only falling 4 bps, NextWealth finds

Isabel Baxter
clock • 3 min read

The “rapid decline” in model portfolio service (MPS) fees appears to have slowed and has remained flat over the last six months, NextWealth has found.

NextWealth's bi-annual MPS tracking study confirmed that fee pressure has flattened out, with the average total cost falling only 4 bps in the past 12 months and remaining flat over the past six months. Between 2021 and 2024 the asset weighted average total cost - MPS fee plus ongoing charges figure- paid by the client almost halved from 1% to 0.54%. "We're calling the bottom on fees. While over recent years we've reported on the rapid decline in fees, mainly due to a higher allocation to passive tracker funds, downward pressure seems to have eased," NextWealth managing director Heath...

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

PortfolioMetrix unveils blended model portfolio range for advisers

PortfolioMetrix unveils blended model portfolio range for advisers

Includes six blended options

Isabel Baxter
clock 24 July 2025 • 2 min read
Platform MPS swells its share of wealth management assets

Platform MPS swells its share of wealth management assets

Now accounts for 16% of total UK market

Isabel Baxter
clock 21 July 2025 • 2 min read
MPS provider ups governance game as part of FCA requirement

MPS provider ups governance game as part of FCA requirement

Ebi has made several board and executive changes

Isabel Baxter
clock 09 July 2025 • 4 min read