We recently published Part 1 of our MPS outlook series, entitled MPS in 2026: Regulation, efficiency and the new era of adviser partnerships. You can check this out here.
In this Part 2 of our MPS outlook series, we turn to the investment strategies shaping portfolios, the growing focus on bespoke solutions, the influence of demographics and technology, and the market’s increasingly positive long-term outlook.
From selective risk-taking to co-manufacturing and next-generation reporting, asset managers share how MPS is evolving – and what it means for clients and advisers heading into 2026 and beyond.
Positive outlook for 2026 – ebi
“The market outlook for MPS heading into 2026 remains strong – while recent years have seen an influx of new providers in the space, it is clear that advisers continue to see a range of benefits from adopting MPS solutions, including enhanced investment approach sophistication, support in meeting regulatory requirements, as well as the wider technology platforms offered by some MPS providers. Outsourcing these areas has allowed financial advisers to focus on higher value-add services, including financial planning and managing client relationships, and we don’t think this trend is going to disappear any time soon.
“The FCA’s upcoming MPS review has a chance to positively shape the industry and formalise different elements within it, and we look forward to receiving the FCA’s findings in due course. There is speculation regarding the potential for the FCA’s review to outline more formalised guidance in terms of factsheets and wider reporting for example, which could be a very beneficial development. As would further communication from the FCA on Consumer Duty and how this is expected to be continued to be implemented by the MPS industry, as we’re all working very hard to make sure we are fully meeting this regulation, and so assurance that the industry is on the right path is always appreciated.
“Elsewhere within, and adjacent to, the MPS space we are seeing an increasing number of providers, including ebi, launch new fund of funds solutions – designed primarily to meet the issue of capital gains tax management for GIA clients, with falling CGT allowances leading to increased headaches for advisers when managing rebalances and fund swaps for GIA accounts within MPS solutions. We believe this is an area that will continue to grow, with MPS providers increasingly offering a fund of funds solution alongside their core MPS range.”
Adviser demand and technology are reshaping MPS – Collidr
“MPS continues to be the most popular investment solution for advisers, and there remains a significant pool of assets likely to move into discretionary models over the coming years still. Combined with demographic headwinds and growing tax complexities, the demand for professional advice is only set to increase – good news for advisers and a clear tailwind for the MPS market.
“The MPS market is maturing. Whether we’ll see more competition, however, is less certain – there are already more than 200 MPS providers in the UK. From what we see, advisers are now prioritising efficiency and client service, forming deeper partnerships, and working with fewer providers, which may drive a trend towards consolidation. Advisers are also telling us that managing six, seven or eight investment partners can quickly become operationally challenging, undermining the efficiency that MPS was designed to deliver.
“This will naturally lead to sharper discussions around value. Are you seen as a genuine partner in helping advisers grow and serve clients, or simply as an investment provider? The difference will become increasingly important. Client service will continue to evolve too: towards real-time reporting, greater transparency, and more personalised communication – with technology underpinning every aspect of service delivery.”
“At Collidr, we see this evolution as an opportunity. By combining institutional-grade investment expertise with technology, data, and automation, MPS providers can deliver consistent performance, scalable efficiency, and an enhanced client experience.”
Selective risk-taking in a cautious market – Quilter Cheviot
“There are a lot of negative views out there in the market just now, with talk of bubbles and overstretched valuations. While we obviously cautiously observe that, we don’t feel like now is the time to derisk. Earnings season has kicked off well and there are a lot of opportunities still presenting themselves. As such, we wanted to use this opportunity to tweak some of our exposures within our building block funds and focus on the individual stocks we believe should continue to do well.
“While we watch the economic and fiscal position of the UK, and other developed markets, closely, there remains good, positive stories out there to latch on to and take advantage of. Similarly, emerging markets are showing signs of further attractiveness thanks to stabilisation within the Chinese economy and exposure to growth within India.
“Our building block structure allows us to remain highly nimble and selective, avoiding pockets of exuberance at a time when market concerns are starting to grow louder.”
Consistency and control make MPS a cornerstone for growth – W1M
“We remain bullish on the outlook for MPS, which continues to be the main driver of new assets into our business. The consistent growth shows the trust that advisers place in our approach and the strong risk-adjusted returns we have delivered over time. Recent industry reports confirm that we continue to gain market share, strengthening our position as one of the key players in this highly competitive market.
“Since launching in 2011, the W1M MPS has proved its strength and versatility and continues to appeal to a broad range of clients with relatively uncomplicated requirements. While demand for Multi-Asset Funds has increased (our range is approaching £2bn of assets), we do not see demand outstripping that of MPS. The success reflects strong performance and the advantages of our building-block structure, which tends to result in fewer taxable events and allows seamless management and rebalancing across 28 platforms without substitute funds or share classes.
“We are known for our global and active investment philosophy and remain committed to managing portfolios directly rather than outsourcing with third-party funds. This gives us greater control, transparency, and cost efficiency, keeping MPS central to our growth.”
Co-creating bespoke solutions for a changing market – Parmenion
“We believe there is lots of room left for MPS growth. However, MPS providers need to continue evolving their propositions with the demands of the market.
“A particular area of focus for Parmenion Investment Management this year has been within a category we call ‘We’ll do it with you’. This is our bespoke MPS proposition where we co-manufacture investment solutions for advice firms with differing levels of input from the firm themselves, depending on their level of expertise. The proposition has become particularly appealing to some firms post-consumer duty; it allows them to build a solution or set of solutions that are fit for their target market.
“A growing challenge for MPS providers is the increased number of providers in the market. A positive outcome of this growth has been the natural reduction in costs for end clients, as new providers undercut incumbents. However, with new tools coming to market over the past few years to help advisers judge the performance and costs of different providers, cost differentials may become less of a USP. The greater transparency these tools enable make it easier to see long term value.
“Continued improvement is welcome here – advisers need tools that clearly differentiate products and highlight important factors outside of returns and costs – such as mandates being met, especially in more niche areas such as ESG or decumulation focused investment solutions.”
Positive momentum continues despite regulatory uncertainty – Evelyn Partners
“I believe the outlook for MPS as we head into 2026 remains very positive. At Evelyn Partners we continue to see strong AUM growth across our MPS ranges supported by flows from both existing, and crucially, new buyers. We have a strong pipeline of a large number of IFA firms that are in the process of making the transition from an in-house managed advisory to an out-sourced discretionary service and it is likely that this trend will continue.
“The one element of uncertainty for the sector is the upcoming FCA review and what its findings may be. However, we believe that the processes we have in place regarding data and audit trails, for example, are more than robust and place us in good stead. One subject that we will be fascinated to hear what the regulator’s views on is co-manufacturing. This is probably the biggest grey area in the current market and some clarity on what is and what isn’t acceptable will be an important step forward for the industry in terms of greater transparency and client outcomes.”
Looking ahead
The outlook for MPS is not just positive, from what these leading asset managers are telling us, it’s full of promise for advisers who embrace its potential. The insights shared by providers in this feature show that MPS can help advisers deliver consistent investment outcomes, simplify complex processes, and strengthen client relationships. With innovation, technology, and regulatory clarity supporting their day-to-day work, it means that advisers can focus on what really matters, adding value, building trust, and helping clients achieve their financial goals.
By choosing the right MPS partners, advisers can use today’s competitive and evolving market to their advantage, creating more resilient, future-ready practices, turning challenges into opportunities and making a real difference for the lives of the clients they serve. Thinking back to the late Stephen R. Covey’s ground-breaking and powerful work ‘The 7 habits of highly effective people’ to us that all sounds like ‘win-win’!
This feature was part of our MPS Insights 2025 publication – designed with advisers’ needs in mind. You can download your copy of the publication here…. https://ifamagazine.com/2025-managed-portfolio-services-mps-insights/
