As advisers seek smarter, more scalable ways to deliver value for clients under Consumer Duty, Vanguard’s Head of UK Intermediary, Douglas Abbott, tells Sue Whitbread, Editor at IFA Magazine, how the firm’s low-cost model portfolio services are not only helping advisers simplify their investment management processes but also to sharpen their client proposition. In this conversation, Douglas highlights how Vanguard is redefining partnership with advisers, helping them to focus on what matters most – building long-term client relationships, whilst at the same time growing a stronger, more resilient business.
Advisers are refocusing on what really matters
The rise of model portfolio services (MPS) and multiasset solutions has been one of the defining trends in the UK advice sector over the past decade. But what’s driving that? For Abbott, this development isn’t just about convenience, it reflects a fundamental change in how advisers are creating value for their clients.
“Advisers are increasingly focusing on what really matters to their clients, which is their needs, goals and objectives,” he begins. “The world of financial planning has become more complex. Clients are looking for greater reassurance, structure and clarity as they plan for their financial future. They want confidence that they’ll reach their goals, especially as retirement planning becomes more nuanced.”
That growing complexity has prompted advisers to concentrate on their core strengths, which lie with delivering a robust financial planning process and building long-term client relationships, while seeking professional support for the investment element of their client proposition.
“What we’re seeing,” Abbott continues, “is advisers spending more time with their clients, helping them put long-term financial plans in place, whilst managing client retention and acquisition. They’re increasingly outsourcing the day-to-day running of investment portfolios to professional managers with an overall focus on controlling costs as well as improving quality. That allows them to benefit from economies of scale, deep investment insight, and confidence that their clients’ portfolios are managed in line with their risk profiles, their objectives and the regulatory standards that we must all increasingly adhere to.”
The investment environment has changed
The market backdrop is another significant factor. For much of the past two decades, advisers enjoyed relatively benign investment conditions, where equities and bonds both performed well. But that world has shifted.
“We’ve entered a more unpredictable market environment,” Abbott explains. “Volatility has increased, and correlations between asset classes have changed. It’s much harder now to deliver consistent outcomes without the dedicated research and resources that large, professional investment teams can bring. That complexity is a major reason why so many advisers have turned to multi-asset and MPS solutions.”
At the same time, regulatory change, especially postRDR and through Consumer Duty, has reinforced the need to ensure that the appropriate expertise is used and the case for outsourcing the complex task of managing investments. “The bar for demonstrating good value and robust processes has never been higher,” says Abbott. “Advisers must be confident not only in their client recommendations, but also that the underlying portfolios are appropriately governed and monitored. Partnering with a trusted investment provider gives them that assurance.”
He also highlights consolidation within the advice market as another important trend. “The huge amount of merger and acquisition activity we’ve seen means advice firms are increasingly looking to streamline their propositions,” he notes. “Having a consistent, scalable CIP, underpinned by a low-cost investment solution, such as MPS, makes operational sense. It helps maintain consistency across the client base and frees up time for firms to focus on the human side of advice.”
The outcome, Abbott suggests, is an advice profession that’s clearer than ever on where its true value lies. “The real value of financial advice isn’t in trying to beat the market, it’s in helping clients define their goals, stay disciplined, and make good decisions. MPS solutions allow advisers to spend more time doing just that.”
Redefining adviser value in the Consumer Duty area
For Vanguard, the concept of “adviser value” has long been central to its philosophy. Almost 25 years ago, the firm introduced its Adviser’s Alpha framework, a study that continues to influence how advisers articulate their worth today.
“That research quantified something advisers intuitively knew,” Abbott recalls. “It showed that good advice, delivered through planning, behavioural coaching and discipline, can add around 3% per year in additional net returns. That’s not from stock-picking or market timing; it’s from helping clients stay invested, avoid emotional decisions, and remain focused on their goals.”
In today’s Consumer Duty landscape, that message has renewed relevance. “Consumer Duty has sharpened everyone’s focus on demonstrating value,” Abbott says. “It’s made clear that value isn’t simply about cost, it’s about outcomes, service and fairness.”
Advisers, he adds, are now much more confident in articulating that value. “We’re seeing advisers not only show how their advice adds value but also scrutinise the components of the client proposition, the platforms, products, portfolio etc, to make sure each part delivers fair value. That’s a healthy development not just for the industry but importantly for the clients and their future.”
The real value of financial advice isn’t in trying to beat the market, it’s in helping clients define their goals, stay disciplined, and make good decisions. MPS solutions allow advisers to spend more time doing just that.
The increased focus on value has also accelerated the shift toward cost-efÏcient, evidence-based investment approaches. “Advisers are increasingly challenging providers to deliver quality at the right price,” Abbott says. “That’s put positive pressure on the industry. The growing adoption of indexing and pooled investment vehicles is a direct reflection of that trend.”
He believes transparency benefits everyone: advisers, clients, and asset managers “Clients today have higher expectations and more access to information. Advisers need to show exactly what clients are paying for, and why. When advisers can explain every element of the charge, from the advice fee to the portfolio cost, and demonstrate the value behind it, that’s when trust is really strengthened.”
Making life easier for advisers and their clients
For Abbott, Vanguard’s mission is simple: to make life easier for advisers and their clients. “Our purpose as an asset manager to not just design portfolios that deliver on the expected outcomes but also to simplify investing without compromising quality or rigour,” he says.
That philosophy underpins the firm’s flagship LifeStrategy range. This consists of multi-asset portfolios built on globally diversified Vanguard index funds. “LifeStrategy has been hugely popular among advisers,” Abbott notes. “It’s straightforward, transparent and cost-effective. Advisers know exactly what they’re getting, and so do their clients.”
Vanguard has since extended that approach to its model portfolio services (MPS). “We offer two core MPS ranges, one that mirrors the LifeStrategy approach, and another Global LifeStrategy range that introduces more international diversification,” he explains. “The idea is to offer flexibility and choice across more platforms and wrapper types to help advisers serve their clients.”
But investment solutions are only one part of the equation. Service and support, Abbott stresses, are equally important. “Being close to advisers is critical for us,” he says. “We’ve built a strong national intermediary team, with representation across seven UK regions. Each region has both a field-based lead who engages directly with firms, and an office-based partner in London providing dedicated support.”
That dual structure ensures consistent service and personal contact. Around that sits a network of Vanguard specialists who provide deeper expertise. “We’ve invested in teams that can support advisers with everything from investment process and asset allocation to regulatory updates, research insights, and behavioural coaching,” Abbott says.
Vanguard also provides extensive educational resources, CPD-accredited training, and adviser-focused research. “We run webinars, seminars and events throughout the year,” he explains. “We’re out there meeting advisers, listening to their challenges and helping them find solutions. And online, we offer a comprehensive library of educational material designed to help advisers work more efficiently and effectively.”
All of this, Abbott says, feeds into Vanguard’s core belief in partnership. “We see ourselves as an extension of the adviser’s team. Our heartland is in investment management, but our focus is on advice, helping advisers demonstrate their professionalism and enhance their value proposition to clients. Whether that’s through our products, insights, or service, we aim to be a true right-hand partner.”
Why advisers choose Vanguard for MPS
When asked why advisers should consider Vanguard’s solutions if they haven’t already, Abbott points to three central reasons.
“First,” he says, “Vanguard was founded with the sole purpose of doing the right thing for investors. That’s not just a tagline, it’s embedded in our structure. We’re a mutual organisation, owned by our funds, which are in turn owned by our investors. That means any economies of scale we achieve are returned to clients through lower costs. That alignment of interest is incredibly powerful.”
“Second,” he continues, “our LifeStrategy range has a long and successful track record. It’s a tried-and-tested approach that has delivered consistent outcomes for investors, with clarity and simplicity. Advisers know what to expect. There are no surprises and there’s no unnecessary complexity.”
“Third,” Abbott says, “we combine those principles with a deep commitment to supporting advisers. We recognise that advisers want more than products, they want partnership. Our team is here to provide that, helping advisers navigate not just investment questions, but broader industry developments too.”
That ethos, he adds, extends across everything Vanguard does. “We’re constantly investing in our proposition, developing new products, research, and tools for advisers. We’ll never rest on our laurels. The advice profession is evolving fast, and we’re determined to evolve with it.
Adding some broader context to that ethos, Abbott points to the Vanguard Advice Survey 2025, entitled ‘Client Connect’, as a “great example of how we can help advisers to understand the perceived value of advice and how it’s central to serving clients well.” Readers can access a copy of the Client Connect report via the link at the end of this article.
The future of MPS: steady growth and smart evolution
Looking ahead, Abbott expects continued strong growth for model portfolio services. “There have been many different surveys carried out in this space, but we’ve regularly seen annual MPS growth rates of more than 25% in MPS uptake over the past five years,” he says. “That’s a clear signal of how adviser models are shifting, and there’s still plenty of room to grow.”
We recognise that advisers want more than products, they want partnership.
He anticipates further integration of indexing into MPS solutions. “Index-based investing is becoming increasingly central to MPS design. It offers cost efficiency, diversification and transparency, all things that advisers and their clients value. We’ll see more MPS incorporating core index components, sometimes complemented by active overlays where appropriate.”
At the same time, he predicts greater tailoring to client needs. “As technology and platform capability evolve, advisers will be able to customise MPS more effectively. We may see new asset types come into play, such as private assets, where access becomes more democratised.”
Still, Abbott believes the fundamentals will remain constant. “The core principle of MPS, which is a risk-rated, client-aligned, professionally managed portfolio, won’t change,” he says. “What will change are the delivery mechanisms, wrappers and access points. Whether it’s through funds, ETFs or platform-based solutions, the goal remains to deliver consistency, efficiency and good client outcomes.”
And as the MPS market matures, Vanguard’s role will continue to be one of stewardship and partnership. “Our focus is on ensuring advisers can depend on us,” Abbott concludes. “That means reliable solutions, strong governance, low costs and excellent service. It also means being proactive in supporting advisers with the insight, training and research they need to thrive in a fast-changing world.”
A partnership built on principles
Ultimately, Vanguard’s success in the UK MPS market reflects the same principles that have defined the firm globally since its founding in 1975: investor alignment, simplicity, value and integrity.
For advisers, that translates into a proposition designed not just to deliver returns, but to build stronger, more sustainable client relationships.
“In a world where everything is getting more complex,” Abbott says, “our goal is to make things simpler. But not just for advisers, it’s for their clients, and for the advice profession as a whole. We want advisers to feel confident that when they partner with Vanguard, they have the right tools, the right people, and the right solutions behind them.”
Our ambition is a partnership built on trust, and one that looks set to continue powering progress for advisers and clients alike.
Three reasons to choose Vanguard MPS
1. Client-first philosophy: Vanguard’s mutual structure ensures alignment of interests, delivering value back to investors through lower costs.
2. Proven multi-asset pedigree: The LifeStrategy range and its model portfolio equivalents offer simplicity, transparency and consistent outcomes.
3. Adviser-centric partnership: A nationwide intermediary team, extensive educational resources and practical tools help advisers deliver value with confidence.
Further information: For further details on Client Connect, you can download The Vanguard Advice Survey 2025 by clicking here.
About Doug Abbott
Doug Abbott joined Vanguard in June 2024 as Head of the UK Client Group. In this role, he leads Vanguard’s relationships with UK clients across its range of ETFs, mutual funds, and model portfolios.
Before joining Vanguard, Doug spent 15 years at Schroders, where he began his career on the graduate scheme. Over the years, he held several senior positions, including Head of UK Wealth, Country Head of South Africa, and Head of UK Investment Trust Sales.
Doug holds an MA in Modern History and an MSc in African Studies, both from the University of Oxford.
