Eight in 10 (82%) financial advisers expect to increase model portfolio service (MPS) usage over the next three years, according to research by Nedgroup Investments.
Within this, 34% of advisers said they would do so ‘significantly’ and 48% said ‘somewhat’.
Just 4% of advisers said they were looking to reduce their MPS usage, and 14% were looking keep their use of MPS ‘about the same’ over the time period.
All of the IFAs who responded already use MPS as part of their client offering, with 64% using MPS for the majority of their clients.
In terms of favoured ways to access MPS, 24% said they primarily use third-party MPS provided by platforms for their clients, closely followed by MPS from DFMs and multi-asset funds, both at 22%.
One in five (18%) said in-house MPS managed by the advice firm were their favoured option for clients, while 14% said bespoke DFM portfolios.
Apiramy Jeyarajah, chief commercial officer at Nedgroup Investments (pictured), said: “Model portfolio services clearly continue to be a core part of advisers’ investment propositions, and the research shows that this is set to accelerate.
“With over 80% of advisers expecting to increase their use of MPS over the next two-to-three years, we can see growing confidence in outsourced investment solutions, as firms look to deliver consistent client outcomes, improve efficiency, and enable advisers to spend more time where they add the greatest value: helping their clients achieve their financial goals.
“The direction of travel is clear, demand for scalable, professionally managed investment solutions will continue to grow.
“We expect MPS to become an even more integral part of the adviser market in years to come.’’
See also: The regime has changed: Why Schroders rebranded its multi-asset fund
