Multi-asset offerings are dominating the managed portfolio market in 2023, a Morningstar report has revealed.
The UK Managed Portfolios Landscape report analyses some 1,100 UK managed portfolios looking at their allocations, use of underlying investments, performance and costs.
It found that the vast majority of managed portfolios are multi-asset offerings with 93% classified in Morningstar allocation categories.
With the two most popular categories being GBP Allocation 40-60% Equity at 26.3%, and GBP Allocation 60-80% Equity at 24.9%.
The number of new managed portfolio launches reported to Morningstar has fallen, down from 210 in 2020 to just five this year so far.
Compared to 2022, the overall proportion of managed portfolios described as passive in terms of holdings by their provider increased to 29% from 23%.
Tom Mills, senior analyst multi-asset and alternatives at Morningstar, said: “The drop in the number of managed portfolio launches this year demonstrates the market is reaching maturity after we saw such rapid growth in the previous five years, with many providers now having established sizeable ranges spanning active, passive, blended and sustainable offerings.”
