UK financial advisers believe their current focus on portfolio management is costing them new business and hindering their ability to help people with effective financial planning, according to a new independent peer study conducted by Rathbones Group, one of the UK’s leading wealth management companies.
The findings come in a new study of 100 independent financial advisers (IFAs) which coincides with the launch of Rathbones’ upgraded model portfolio service (MPS). This enables financial advisers to offer their clients enhanced, actively managed solutions led by an award-winning investment team.
Available from today (22 September), the suite of seven MPS portfolios consolidates decades of discretionary investment expertise at Rathbones into a single, streamlined proposition. This has been achieved at highly competitive cost, with ongoing charges (OCF) capped at 0.5%, and no discretionary fund manager (DFM) fee applied.
73% of independent financial advisers surveyed believe they could grow their business by up to 10% in a year if more time spent managing portfolios was reallocated to client acquisition and financial planning. 27% said they could grow their client base by 11–20%.
Against a backdrop of changing tax, pension, and estate planning rules, 94% of advisers said their profession is best served by focusing on financial planning to address the needs of their clients, rather than day-to-day investment management.
Andrea Yung, Investment Director at Rathbones and manager of the MPS, says: “In today’s increasingly complex financial landscape, many advisers are stretched thin trying to balance investment management with comprehensive financial planning – often without the scale or support to do both effectively.
“Rathbones’ upgraded MPS is designed to ease that burden, giving advisers access to actively managed, resilient investment solutions. This allows them to focus on what truly differentiates their service: delivering forward-looking, holistic financial planning that meets the evolving needs of their clients.”
‘True active’ MPS
Designed for advisers and their clients investing over the medium to long term, Rathbones’ MPS offers a range of actively managed portfolios aligned to diverse investment objectives and risk appetites – from adventurous to conservative.
The underlying funds powering each portfolio are managed by David Coombs, Head of Multi-Asset Investments at Rathbones Asset Management, alongside seasoned fund manager Will McIntosh-Whyte. The portfolios themselves are managed by Andrea Yung, who previously led MPS at IW&I. The team is supported by Rathbones Asset Management’s Multi-Asset team, which boasts a strong 16-year public track record in running multi-asset funds.
The portfolios are truly actively managed, constructed from the ground up using three ‘building block’ funds launched exclusively for this service. These funds are based on Rathbones’ proprietary risk framework, known as “LED” (see note below).
The seven portfolios in the MPS, in ascending order of risk, are: Conservative, Cautious, Cautious+, Balanced, Balanced+, Growth, and Growth+. Portfolios are rebalanced in line with market views and decisions from the investment team, with ongoing oversight to ensure they remain aligned to their risk profile.
David Coombs, Head of Multi-Asset Investments at Rathbones Asset Management, says: “The three funds within the Rathbones MPS are designed to work in harmony, providing financial advisers with access to a resilient, risk-managed portfolio that evolves over time. The portfolios are more agile, enabling us to respond swiftly to changing market conditions without relying on third-party decisions.
“By managing assets in-house, we maintain full visibility of each funds’ holdings and can implement changes with speed, confidence, and precision.”
Rathbones’ upgraded MPS is the first enhanced range of investment products unveiled by the Group this year, building on its expanded capabilities following the successful integration with Investec Wealth & Investment.
Other key findings from the study:
- The top challenges reported by IFAs relating to portfolio management are: time-consuming rebalancing (61%), market responsiveness (55%), and scalability (54%).
- 51% of advisers say they would shift more time to financial planning and client service if portfolio management were handled by a specialist provider.
- 61% of IFAs currently hold 26–50% of clients’ investable assets in model portfolios; over a quarter hold even more.
- 90% of IFAs surveyed expect to increase allocations to actively managed MPS solutions over the next three years.
- The top drivers of this shift are economic uncertainty (73%), rising market volatility (58%), and demand for greater portfolio resilience (56%).
