This article first appeared in FT Adviser on 8 January 2026
The rise of discretionary model portfolio services is more than a trend. It is a signal of how advice is evolving.
Advisers are not just looking for portfolios; they want strategic partners who can deliver a full toolkit for every client need. And in 2026, that demand will only intensify.
MPS growth is just the beginning
We know intermediaries are seeking forward-thinking and client-led products and propositions more than ever. Advisers increasingly want to outsource, and they want an active partner at every step.
The MPS market has surged to £190bn, up 32 per cent year-on-year, and assets have nearly doubled in three years. One in four advisers plan to increase usage in the next 12 months, according to research from consultancy NextWealth.
Intermediaries need client-focused investment specialists to manage diversified portfolios for them within agreed parameters to free them to focus on what matters most: helping clients plan for their futures.
We can expect to see more tailored and co-manufactured models, decumulation solutions, and unitised offerings as advisers focus on efficiency and scalability.
Platform and tech integration are increasingly helping intermediaries to deliver their propositions. But differentiation will come from service; strategic partnerships offering solutions that demonstrably meet the needs of clients, not just tech investment.
Advisers want partners who offer a full toolkit for growth, retirement, and inheritance planning. Not only off-the-shelf portfolios, but the option to have investment solutions built for them or with them.
Regulation and demographic shifts will continue to reshape advice
The consumer duty and fair value assessments will continue to underscore the industry’s focus on good outcomes.
With the Financial Conduct Authority consulting on proposals to simplify its requirements until January 27, it is expected that any changes will come into force in the second quarter of the year. The specific outcomes of the consumer duty requirements review will be important.
But one thing remains clear: the FCA’s increasingly data-led approach will continue to push advisers towards transparent, outcome-oriented solutions. It is not just about what is promised for end customers, but what is evidenced.
At the same time, longer lifespans and intergenerational wealth transfer will continue to reshape planning needs.
By 2030, one in six people globally will be aged 60 or over, according to the World Health Organization, and Office for National Statistics figures show the number of UK centenarians has doubled in two decades. Advisers must adapt with an even greater focus on client-centricity and personalised solutions.
Investor education continues to be the missing link
Complexity and lack of understanding remain barriers to investing. Policy alone will not create a culture of investing – understanding will. Advisers play a critical role in demystifying tax-efficient products and guiding clients through change.
The chancellor’s latest Budget – a mixed bag for investors and advisers alike – introduced complexity and some headwinds but also opened doors. Proposed ISA reforms, dividend tax hikes, and stealth taxes mean proactive planning is essential.
Advisers who help clients navigate uncertainty and understand what policies mean for their finances will add real value.
Savers and investors need to grasp how tax-efficient products like ISAs work and what they can deliver. Our research found 31 per cent of high-net-worth individuals plan to draw on their ISAs for income, so demystifying them is crucial.
Active management matters more than ever
It has been an eventful year for investors, marked by some significant changes in the market landscape. From US President Donald Trump’s return to the White House – bringing tariff hikes and rolling back climate initiatives – to mounting concerns over AI valuations and relentless speculation about interest rate cuts, 2025 was anything but quiet.
Global economics is increasingly fragmented. Different economies are out of sync, and volatility driven by de-globalisation and policy shifts will persist. Headlines will continue to spark short-term panic – think US recession fears, AI bubble talk, and de-dollarisation. But fundamentals matter most. Staying disciplined and conviction-led will remain critical. 2025 reminded us of this.
Despite the noise, equity markets delivered another strong year. It was not all about the US either. Opportunities were global, though events like April’s so-called “liberation day” drove significant intra-day volatility – a timely reminder of why diversification matters.
Our chief investment officer Patrick Farrell has described 2025 as “a valuable case study in navigating volatility”.
Looking ahead, fiscal sustainability will likely continue to dominate policy agendas. Governments under pressure to cut spending and address deficits could influence growth and market sentiment. For advisers, this means staying alert to policy risk and its impact on portfolios.
Well-diversified, multi-asset investing has never been more important. Opportunities in 2026 will span regions and asset classes.
Active rebalancing – strategically buying and selling assets to maintain alignment with client goals – will become essential for managing risk and capturing opportunity as sector and regional performance diverge.
Nothing on this website should be construed as personal advice based on your circumstances. No news or research item is a personal recommendation to deal.
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