- 94% of IFAs believe their profession is best served by focusing on financial planning to help people navigate changes in tax, pensions and estate planning rules.
- Rathbones launches upgraded MPS – seven actively managed portfolios designed for resilience, with an OCF capped at 0.5% and no DFM fee.
A new independent peer study commissioned by Rathbones Group, one of the UK’s leading wealth management businesses, has revealed that financial advisers feel their emphasis on portfolio management is limiting business expansion and preventing them from fully supporting clients with broader financial planning.
The research, based on responses from 100 independent financial advisers (IFAs), coincides with the launch of Rathbones’ enhanced model portfolio service (MPS). The new platform gives advisers access to actively managed investment solutions from Rathbones’ award-winning team.
From today (22 September), advisers can choose from seven streamlined MPS portfolios which draw on decades of discretionary investment experience. Designed to be cost-effective, the service caps ongoing charges (OCF) at 0.5% and applies no discretionary fund manager (DFM) fee.
According to the survey, 73% of advisers believe their businesses could expand by up to 10% annually if less time was spent managing portfolios and more was devoted to client acquisition and financial planning. A further 27% suggested growth could reach between 11–20%.
With tax, pension, and estate planning rules evolving rapidly, 94% of advisers stated that their profession is best served by focusing on financial planning, ensuring clients receive the guidance they need rather than concentrating on day-to-day investment management.
Andrea Yung, Investment Director at Rathbones and manager of the MPS, says: “In today’s increasingly complex financial landscape, many advisers are stretched thin trying to balance investment management with comprehensive financial planning – often without the scale or support to do both effectively.
“Rathbones’ upgraded MPS is designed to ease that burden, giving advisers access to actively managed, resilient investment solutions. This allows them to focus on what truly differentiates their service: delivering forward-looking, holistic financial planning that meets the evolving needs of their clients.”
‘True active’ MPS
Designed for advisers and their clients investing over the medium to long term, Rathbones’ MPS offers a range of actively managed portfolios aligned to diverse investment objectives and risk appetites – from adventurous to conservative.
The underlying funds powering each portfolio are managed by David Coombs, Head of Multi-Asset Investments at Rathbones Asset Management, alongside seasoned fund manager Will McIntosh-Whyte. The portfolios themselves are managed by Andrea Yung, who previously led MPS at IW&I. The team is supported by Rathbones Asset Management’s Multi-Asset team, which boasts a strong 16-year public track record in running multi-asset funds.
The portfolios are truly actively managed, constructed from the ground up using three ‘building block’ funds launched exclusively for this service. These funds are based on Rathbones’ proprietary risk framework, known as “LED” (see note below).
The seven portfolios in the MPS, in ascending order of risk, are: Conservative, Cautious, Cautious+, Balanced, Balanced+, Growth, and Growth+. Portfolios are rebalanced in line with market views and decisions from the investment team, with ongoing oversight to ensure they remain aligned to their risk profile.
David Coombs, Head of Multi-Asset Investments at Rathbones Asset Management, says: “The three funds within the Rathbones MPS are designed to work in harmony, providing financial advisers with access to a resilient, risk-managed portfolio that evolves over time. The portfolios are more agile, enabling us to respond swiftly to changing market conditions without relying on third-party decisions.
“By managing assets in-house, we maintain full visibility of each funds’ holdings and can implement changes with speed, confidence, and precision.”
Rathbones’ upgraded MPS is the first enhanced range of investment products unveiled by the Group this year, building on its expanded capabilities following the successful integration with Investec Wealth & Investment.
Other key findings from the study:
- The top drivers of this shift are economic uncertainty (73%), rising market volatility (58%), and demand for greater portfolio resilience (56%).
- The top challenges reported by IFAs relating to portfolio management are: time-consuming rebalancing (61%), market responsiveness (55%), and scalability (54%).
- 51% of advisers say they would shift more time to financial planning and client service if portfolio management were handled by a specialist provider.
- 61% of IFAs currently hold 26–50% of clients’ investable assets in model portfolios; over a quarter hold even more.
- 90% of IFAs surveyed expect to increase allocations to actively managed MPS solutions over the next three years.
