Portfolio management is proving a major drag on independent financial advisers’ (IFAs) growth ambitions, according to new research from wealth manager Rathbones.
The study, published Monday (22 September), found nearly three-quarters (73%) of advisers believe shifting time away from portfolio management towards client acquisition and holistic planning could grow their businesses by up to 10% annually.
A further 27% see potential growth of 11–20% under the same conditions.
Among the 100 IFAs surveyed, 94% agreed that focusing on holistic financial planning delivers greater value than the day-to-day management of investments. Key pain points included time-consuming portfolio rebalancing (61%), the need to respond quickly to market shifts (55%), and the difficulty of scaling processes (54%).
Reflecting this shift, 90% of IFAs expect to increase allocations to actively managed model portfolio services (MPS) over the next three years.
Rathbones launches upgraded MPS
In response, Rathbones has unveiled an upgraded MPS with capped ongoing charges of 0.5% and no discretionary fund manager fees.
The service includes three in-house managed funds designed to work together to provide risk-managed portfolios that can adapt quickly to market conditions.
Andrea Yung, investment director at Rathbones, said the approach allows advisers to focus on “forward-looking, holistic financial planning” rather than investment mechanics.
David Coombs, head of multi-asset investments, added that in-house management “enables rapid, confident adjustment without reliance on external decisions.”
The upgrade builds on Rathbones’ integration with Investec Wealth & Investment, underlining a strategic focus on scalable solutions for advisers.
Transparency push from FE fundinfo
The findings come as FE fundinfo launches its MPS Universe on FE Analytics, expanding transparency in a market that has lacked standard ratings and clear comparability.
The new tool provides in-depth data, MPS crown ratings, sector frameworks, and comprehensive reporting.
Rob Gleeson, CIO at FE fundinfo, said its new MPS sectors are designed with flexible equity bands rather than rigid 20% brackets, avoiding “artificial clustering” and ensuring fairer comparisons.
“It’s about bringing stability and integrity to MPS comparisons, so advisers can trust that they’re benchmarking like for like,” he added.
Sector-wide shift
While Rathbones positions its upgraded MPS as a solution to workload pressures, industry observers note that the long-term impact on IFA growth remains untested.
Still, both Rathbones’ research and FE fundinfo’s transparency initiative point to a sector-wide recognition: advisers increasingly see MPS as central to efficiency, client outcomes, and future business growth.
