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...

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