Almost a third (32%) of advisers and IFAs say that model portfolio services (MPS) have become the main tool for constructing client portfolios, according to research from Charles Stanley.
Additionally, advisers are increasingly relying on model portfolios as part of their investment solutions, according to the firm, with 87% now more likely to recommend MPS to their clients.
For example, more than 30% of advisers say that due to consumer duty they have become more selective on the strategic partnerships they use.
Rebecca Stein, head of product at Charles Stanley, said: “Advisers are undergoing a clear structural shift in how they construct and deliver client portfolios.
“While multi-asset funds continue to play a role, there is a growing preference for outsourced, centralised investment solutions,” she said
By contrast, just 27% of advisers relied primarily on traditional multi-asset funds, less than a quarter on in-house portfolios and just 17% on bespoke DFMs.
Stein concluded: “As the industry continues to shift towards greater personalisation and tailored solutions, we expect MPS to remain a core building block in client portfolios for years to come.”
See also: Morningstar and Lang Cat: Half of advisers expect further growth in MPS usage
