The model portfolio sector in the U.K. is at a crossroads. Following a sales boom in 2023, model portfolio (MPS) gross sales growth in the financial adviser channel in the U.K. slowed to just 6% during the first half of this year. This has left many people wondering: have we reached the peak of the MPS adoption curve?
Let us first consider the facts. According to the data, around 90% of gross sales for all funds are coming from firms already using models to some extent.
On the face of it this might suggest market saturation, but dig deeper and there is a different story.
By: Benjamin Reed-Hurwitz, EMEA Research Lead, ISS Market Intelligence
