The rise of discretionary managed portfolio services

MPS solutions have long been part of the adviser toolkit, but our latest research shows just how far they’ve evolved to become a structural pillar of the modern advice industry. 

What was once a useful investment option is now central to how firms deliver scalable, compliant and client‑focused propositions.

According to our survey, 91% of financial advisers and IFAs now use MPS for their clients, underlining the extent to which managed portfolios have become embedded in day‑to‑day practice. 

And this momentum is set to continue: 90% of advisers expect to use or rely on MPS even more over the next 12 months, reflecting increasing demand for efficiency, consistency, and robust oversight across investment solutions.

A market now defined by multi-provider usage

One of the standout insights from the research is just how diversified adviser relationships with MPS providers have become. Only 9% of advisers rely on a single provider. Nearly half (46%) work with two, while an almost identical proportion (45%) use three or more.

This chimes with two important industry trends:

1. Advisers are curating wider propositions to match increasingly segmented client needs – from accumulation to decumulation, from sustainability preferences to complex multi‑asset requirements.
2. Provider differentiation is accelerating. Performance consistency, communication quality, cost transparency and service tailored to client needs are becoming the battlegrounds on which providers compete for adviser trust.

How demand isn’t plateauing 

Of those expecting to increase their use of MPS over the next 12 months, 41% anticipate using them a lot more, while nearly half (49%) expect to use them marginally more. 

The message is clear: advisers see managed portfolios becoming an even more central component of how they deliver robust, fit‑for‑purpose investment solutions.

This shift isn’t just about using MPS more frequently. It’s also about broadening choice. Almost seven in ten (68%) advisers told us they plan to increase the number of MPS providers they work with. That points to a growing desire to refine centralised investment propositions, diversify risk‑managed options, and ensure clients have access to solutions that genuinely align with their goals, risk profiles and circumstances.

For providers, this creates an important responsibility. Advisers aren’t looking for more of the same. They’re looking for flexibility, transparency, and clear differentiation in investment approach and service delivery. In a post-Consumer Duty world, providers that can work with the adviser’s in-house investment committee to help support, design, and implement a CIP will bolster the adviser’s ability to demonstrate how they provide good client outcomes.

As the regulatory environment evolves and client expectations continue to rise, the providers who stand out will be those who help advisers deliver consistent, outcome‑oriented portfolios to meet the needs of their unique target market while freeing up more time to focus on deeper client relationships.

Why advisers are deepening their reliance on MPS

Beyond adoption statistics, the research provides useful insight into the drivers behind MPS growth. Advisers identified four key benefits:

1. Stronger performance comparisons (34%)

MPS helps advisers cut through the noise with clearer portfolio benchmarking, enabling more informed, consistent conversations with clients.

2. Greater scalability across client sizes (32%)

As firms grow, MPS removes operational friction and helps them support a wider variety of client needs without increasing cost or complexity.

3. More time to focus on quality advice and service (32%)

With portfolio construction and monitoring bolstered by a partner, advisers can give more attention to planning and client relationships.

4. Cost efficiency in reviewing the market and investment options (32%)

Amid fee pressure and rising regulatory workload, MPS offers a structured and cost‑effective way to deliver diversified investment solutions.

Overall, MPS promises a powerful combination of efficiency and enhanced client experience – a dual value proposition that continues to resonate strongly across the market.

But MPS does not remove the requirement to audit and report investment decisions. After all, selecting the right MPS partners is itself a choice between many and varied propositions. Advisers need to be confident their partner(s) can support a wide range of current and future potential client needs.

Trust levels remain exceptionally high

Perhaps the most striking finding from our research is the sheer level of trust advisers place in their MPS partners. Confidence is almost unanimous. 

Nearly two‑thirds (64%) of advisers told us they are “very confident” in their current providers, while a further third say they are “somewhat confident”.

This depth of trust speaks volumes about how far the MPS market has matured – and how strongly advisers now associate managed portfolios with reliability, professionalism, and consistent delivery. 

It reinforces a clear message: when MPS works well, advisers feel fully supported in offering robust, scalable, and client‑focused investment solutions.

“An essential part of adviser propositions” – 2026 marks a new era for MPS

Tom Hawkins, Director of Business Management at Charles Stanley, added a note of caution:

“Managed Portfolio Services have had a formidable growth trajectory in recent years as they offer significant benefits and value to advisers. Advisers have turned to outsourcing their investment proposition as a response to the challenge of scalability following Consumer Duty and its increased audit and reporting responsibilities. MPS strategies have become key components of centralised investment and retirement propositions. But MPS can be a broad-brush solution. With more and more providers entering the market, advisers need to pay as much care and attention to selecting the right partner as they would have done the right investments. The ideal strategic partner should not only have the broadest range of in-house solutions, but the ability to offer something unique to the adviser when and where that is required. Only then can the adviser truly offer the right outcome for all clients.” 

There is a broader movement at play

The MPS is shifting from an investment “add‑on” to a structural enabler of modern advice businesses.

The findings make one thing clear: MPS has become mission‑critical. Adoption is high, momentum is building, and advisers increasingly see multi‑provider relationships as a way to serve clients more effectively while scaling sustainably.

As pressure mounts from Consumer Duty, margin constraints, and client expectations, MPS is no longer simply a tool. It is a strategic cornerstone to delivering client outcomes.

Research conducted among 500 Financial advisers / IFAs, with at least 50% working at mid-sized firms (defined as authorised advisory firms with 4-20 advisers), aged 18+. Research was conducted between 02.03.2026 and 13.03.2026.