We ask leading MPS asset managers to share their views on the challenges and opportunities that lie ahead for MPS.
Where is the MPS market heading in 2026 and beyond?
We ask leading MPS asset managers to share their views on the challenges and opportunities that lie ahead for MPS
The MPS market continues to evolve at pace, giving advisers access to scalable, transparent and flexible solutions that can transform the way they serve clients. Yet with regulatory scrutiny, fee pressure and intensifying competition shaping the landscape, understanding where the next opportunities lie has never been more important.
In this feature, we ask leading MPS managers to share their views on what lies ahead for MPS, from the regulatory and operational challenges on the horizon to the innovations, partnerships and practical strategies that can help advisers stay ahead. Their insights reveal how MPS is changing, what it means for adviser businesses, and how firms can harness its potential to deliver stronger client outcomes in 2026 and beyond.
Operational efficiency and strong adviser partnerships are essential
Navigating regulatory pressure and market complexity is top of mind for many providers. Mark Shields, co-manager of the Managed Portfolio Service and Multi-Asset Fund range at Brooks Macdonald, one of the leading asset managers that advisers choose to partner with in the MPS space, sees these pressures as both a challenge and an opportunity commenting: “One of the biggest challenges is navigating a crowded, cost-sensitive market under increasing regulatory pressure. Consumer Duty has raised expectations for evidencing value, and the FCA’s multi-firm review will intensify scrutiny on governance and operational resilience. At the same time, fee compression and platform complexity make it harder to deliver differentiated propositions without eroding margins.
“The greatest opportunity lies in driving operational efficiency and strengthening adviser partnerships. Providers that streamline processes can reduce costs and improve accuracy, freeing up resources for client service. Alongside this, advisers are under pressure to demonstrate value and meet compliance obligations. MPS firms that offer clear value narratives, robust investment approach and consistent outcomes can become indispensable partners, deepening relationships and capturing flows from firms seeking simplicity and support.”
For Shields, the key to success for MPS providers is to focus on operational resilience while helping advisers demonstrate value to their clients, factors which are being amplified in other insights throughout in this report too.
Differentiation requires innovation, not just performance
The MPS landscape is becoming an increasingly crowded one, with more and more MPS solutions becoming available each year. Mark Hopcroft, Head of Investment Solutions at Aberdeen Adviser, explains why traditional differentiators like price and performance are no longer enough and why he believes that it’s innovation which is now the battleground commenting: “The main challenge for MPS providers over the next 12-18 months is navigating an increasingly saturated market while maintaining relevance and profitability. With over 200 providers competing for adviser attention, the pressure to differentiate is intensifying. The traditional battlegrounds of price, performance and proposition are no longer enough. Providers must now focus on innovation that genuinely supports advisers, particularly in enhancing client understanding, engagement and experience.
“The opportunity I’d highlight lies in evolving the provider-adviser relationship from transactional to collaborative. As advisers seek to streamline operations and focus on planning, MPS providers can add value by offering integrated solution that align with the adviser’s brand and philosophy. This means going beyond investment performance to deliver tools, insights and services that help advisers articulate value, demonstrate impact, and build trust with clients.
“Ultimately, success will come to providers who help advisers build better businesses – those that help to improve client outcomes and deliver exceptional experiences. In a landscape shaped by technology, regulation and shifting client expectations, the ability to simplify complexity and deliver clarity will be the true differentiator.”
Consistency through uncertainty is a winning strategy
Market volatility and geopolitical uncertainty continue to test advisers and the MPS providers they work with. Ryan Paterson of Schroder Investment Solutions argues that maintaining consistency and demonstrating clear value will define the next phase of MPS growth, saying:
“Over the next 12–18 months, the key challenge for MPS providers will be navigating continued market uncertainty while maintaining consistency of outcomes for clients.
“With shifting interest rate expectations, inflationary pressures and ongoing geopolitical developments, ensuring portfolios remain resilient, well-balanced and aligned to investors’ long-term objectives will be essential.
“At the same time, we see a significant opportunity for providers to strengthen relationships with advisers and clients by demonstrating clear value and enhancing engagement. As the demand for advice-led, outcome-focused solutions continues to grow, MPS providers who combine strong investment expertise with a deep understanding of client needs will be best placed to succeed. Leveraging investment expertise and insight to deliver greater efficiency, transparency and personalisation will further help differentiate leading propositions.
“At Schroder Investment Solutions, our focus remains on helping advisers deliver the best possible outcomes for their clients through globally diversified, risk-managed portfolios designed to deliver robust, long-term returns across market cycles.”
Outlook for 2026 remains positive
Looking ahead to 2026, the outlook for MPS remains robust, with advisers continuing to see significant value in adopting these solutions. Jonathan Griffiths, CFA and Head of Investment at ebi, a discretionary fund manager built on the principles of diversification, sustainable investment and lower-cost portfolio management, highlights how MPS helps advisers enhance their investment approach, meet regulatory obligations, and leverage technology platforms, freeing them to focus on higher-value activities like financial planning and client relationship management.
“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
Symon Stickney, CEO at Collidr, an asset manager which combines institutional multi-asset expertise with AI-driven behavioural insights to deliver flexible, adviser-friendly MPS solutions, sees significant tailwinds for MPS, driven by adviser demand and demographic trends. In sharing his overview, Stickney also highlights the evolving expectations around efficiency and client service, saying: “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.”
Regulatory focus can reinforce professionalism and value
For Danny Knight, Commercial Director-Intermediaries, at Marlborough, the increasing regulatory focus on MPS is not a threat but an opportunity to highlight professionalism and high standards.
Knight comments: “The MPS market has seen strong growth in recent years, driven by adviser demand for scalable and transparent investment solutions and a greater regulatory focus on suitability and value. We expect this growth to continue, underpinned by an increasing focus on differentiation. More than ever, advisers are looking for a rigorous and consistent investment process, flexibility across platforms and outstanding service.
“The upcoming FCA review into MPS should be viewed as a positive and timely development. It provides an opportunity for the industry to showcase the professionalism, high standards of governance and value that MPS propositions deliver for advisers and their clients. Greater regulatory scrutiny will help to reinforce the position of well-managed services.
“Looking ahead, we believe the most successful MPS services will be those that combine scale with substance – delivering consistent outcomes, robust governance and clear evidence of value in an increasingly competitive market.”
Selective risk-taking in a cautious market
The team at Quilter Cheviot has used a recent rebalance to selectively increase the overall risk exposure of its MPS by adding to international equities. Simon Doherty, head of managed portfolio services at Quilter Cheviot, said: “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.”
Discretionary MPS continues to grow faster than the wider market
The latest NextWealth MPS Proposition Report with data up to the end of Q1 2025, was published in June (see note 1). It showed that discretionary MPS remains one of the strongest growth areas in the adviser market. Assets rose 11% over the previous six months and 25% over the previous year, compared with just 5.3% growth in overall platform assets.
Confirming that discretionary MPS remains a growth engine in the adviser market. Heather Hopkins, Managing Director of NextWealth, pointed to a structural shift in how advisers allocate assets saying: “The market for discretionary MPS continues to grow, with assets growing faster than underlying platform assets. We are not just seeing strong growth but a continued shift in assets. Within the pie that MPS is operating in, it continues to take a bigger slice.”
“We’re calling the bottom on fees. Downward pressure seems to have eased, and we think fees will remain stable over the next two to three years.”
Hopkins also notes that while the market is dominated by large players, competition remains vibrant, with growth across a wide range of models and strategies.
Consistency and control make MPS a cornerstone for growth
George Bromfield, Head of Adviser Solutions at W1M, sees MPS as central to both asset growth and adviser trust as he explains saying: “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.”
Looking ahead
Looking ahead, the outlook for MPS is not just positive, from what these 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/
