Over four in five (82%) of financial advisers expect to increase their use of Managed Portfolio Services (MPS) over the next three years, according to a new report.
A third (34%) expect to increase their usage of MPS to deliver investment solutions to clients significantly over the same period, according to the research from provider Nedgroup Investments.
Just 4% of the advisers surveyed by the provider were considering reducing their MPS usage over the next three years.
All of the IFAs who responded to the survey were already using MPS, with 64% using MPS for the majority of their clients.
In terms of how they preferred their MPS to be delivered, 24% favoured third-party solutions, 22% favoured DFM and multi-asset funds, 18% turned to in-house model portfolios managed by the advice firm, whilst 14% preferred bespoke DFM portfolios.
Apiramy Jeyarajah, chief commercial officer at Nedgroup Investments, said: “It’s significant that every adviser surveyed is already using an MPS in some capacity, with two-thirds using them heavily for most of their clients. The direction of travel is clear, demand for scalable, professionally managed investment solutions will continue to grow.
“We expect MPS to become an even more integral part of the adviser market in years to come.’’
Its report showed assets grew by £46bn to £190bn in the 12 months to the end of September, powered by strong inflows into the sector’s biggest players.
Only three firms saw net outflows over the year, and 37 of 49 included in the report achieved percentage growth above that of the MSCI World Index.
Censuswide surveyed 100 financial advisers in May on behalf of Nedgroup Investments.