The future of MPS: meeting changing client needs

The Model Portfolio Service (MPS) market has come a long way over the past decade, but client expectations continue to evolve. Advisers are increasingly looking for solutions that can adapt to different stages of a client's financial journey while remaining simple to implement and manage.

The demand for tailored investment solutions shows no sign of slowing. Retirement planning is a good example. As retirement becomes more complex and the line between accumulation and decumulation continues to blur, there's a growing opportunity for MPS providers to develop solutions that better reflect how people spend, invest and draw income throughout retirement. We see this as an important area for future innovation and one where working closely with advisers and platform partners will be critical.

The challenge for MPS providers is delivering flexibility without creating unnecessary complexity. The firms that succeed will be those that can offer greater choice while maintaining the consistency, governance and service standards that advisers and clients expect. It's an area we've continued to invest in and one we expect to remain a defining feature of the market's next stage of development.

Navigating a more uncertain world

If the last few years have taught investors anything, it's that market conditions can change quickly. Inflation surprises, shifting interest rate expectations, geopolitical events and concentrated market leadership have all tested portfolios. As a result, the role of an MPS provider is increasingly about more than selecting funds or setting asset allocations. It's about helping advisers and clients navigate uncertainty with confidence.

That means building resilient portfolios, maintaining a disciplined approach to risk and ensuring investment decisions remain focused on long-term goals rather than short-term market noise. In our view, the ability to combine robust portfolio construction with strong governance and clear communication will become even more important in the years ahead.

Technology as a differentiator

Advances in automation and artificial intelligence are already changing how investment businesses operate, creating opportunities to improve efficiency, enhance oversight and deliver better experiences for advisers and clients. At the same time, expectations around digital services continue to rise.

We expect technology to play a growing role in everything from portfolio management to reporting and client engagement. For us, that means continuing to invest in digital capabilities, improving the user experience and providing advisers with easier access to the information and insights they need.

Raising standards across the industry

The Financial Conduct Authority's (FCA) ongoing review of the sector could prove to be an important moment for the industry.

With greater focus on Consumer Duty outcomes, value for money, governance and communication, the review is helping to raise standards and encourage greater consistency across the market. We welcome that scrutiny. Good governance has always been a fundamental part of delivering positive client outcomes, and we believe the industry benefits when expectations become clearer and more consistent.

The value equation

While innovation, personalisation and technology could all play important roles, we believe value for money will remain firmly in focus. Fee pressure is therefore unlikely to disappear and competition will continue to intensify. As the market evolves, advisers will be looking for partners that can demonstrate not only investment expertise but also operational efficiency, robust governance and a clear commitment to client outcomes.

We believe the future of MPS won't be defined by a single trend. It will be shaped by a combination of changing client needs, technological innovation, increased regulatory scrutiny and an investment environment that remains anything but predictable.

What's clear is that advisers will need solutions that are flexible, resilient and built with long-term outcomes in mind. 

Read more in our MPS 5-year anniversary series to learn about our evolution and how we’re innovating today. 

 

The value of an investment and any income taken from it is not guaranteed and can go down as well as up, and the investor may get back less than the original amount invested. It should be noted that diversification is no guarantee against a loss in a declining market.