Discretionary MPS assets are set to surpass £200bn after surging by a third (32%) in a year, defying expectations of a slowdown, according to NextWealth’s latest MPS Proposition Comparison Report 2025.
Assets grew by £46bn to £190bn in the 12 months to the end of September 2025, representing 32% year-on-year growth, powered by strong inflows into the sector’s biggest players.
Of the assets added in the past year, £28.6bn was from 10 firms (62% of net growth). The top two ranked firms, Quilter Wealth Select and Tatton, together now control 25% of market assets. However, while these two dominate the rankings and growth, the report reveals the whole sector continues to grow. Only three firms saw net outflows over the year, and 37 of 49 included in the report achieved percentage growth above that of the MSCI World Index.[1]
Moreover, the report found that growth across the sector looks set to continue, with a net 21% of 296 advisers surveyed planning to increase their allocation to discretionary MPS over the next 12 months. Among advisers currently using MPS, 48% expect to increase their use over the period, while of those advisers building their own portfolios, 30% expect to increase their use of MPS.
Heather Hopkins, Managing Director of NextWealth, says: “We are often asked if we have hit ‘peak MPS’. The evidence points to a firm no. The findings support our view that use of discretionary MPS will continue to increase, both among advisers already using them and those currently building their own portfolios. MPS remains the investment solution of choice and, given that MPS still only makes up 21% of adviser platform assets, there is a huge amount of room to grow.”
Advisers using more DFMs to diversify panels
Notably, for the first time in four years, the report also found that advisers have increased the number of DFMs they use. In 2020, advisers were partnering with 2.5 DFMs on average, but by 2024 this had shrunk to 1.3 due to growing complexity and a need for consistency under Consumer Duty. The 2025 report shows this trend reversing, however, with advisers increasing the average number of DFMs used to 1.7.
Hopkins says this illustrates a growing desire among advisers to offer a broader range of options given high equity market concentration. “In our interviews with DFMs, we heard that advisers have been reassessing their CIPs to ensure they offer a diversified set of asset allocation approaches. Some, for example, want at least one panel option that is underweight the US or the ‘Magnificent Seven’. In some cases, they want a contrarian investment philosophy to have a more rounded toolkit.”
More broadly, the study shows a continuation of the move to passive instruments in discretionary MPS, with the average allocation to active falling 18% to 53% in the past three years as DFMs have responded to intense pricing pressure. However, the pace of this move has slowed as fee pressure has abated. The study found the average total cost of MPS is now 0.51%, only three basis points less than a year ago. NextWealth expects fees to decline only slightly from here on an asset weighted basis, driven by the rise of the big passive MPS players rather than further price cuts.
“The price war in MPS is over,” Hopkins says. “Our interviews confirm that DFMs are feeling less pressure on fees. We expect that the average total cost for MPS will settle around 45bps. The declines happening at down to growth of low cost passive providers rather than any further fee cuts. DFMs are increasingly focused on how to differentiate their propositions beyond price.”
For further information, visit the NextWealth report webpage.
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