We have published our latest research on the continued rise of discretionary MPS.

Hats off to the team at NextWealth – the report is our best ever on discretionary MPS (in my view!).

Mark Aldous, our quantitative researcher crunched the numbers for over 30 DFMs:

• Assets in discretionary MPS grew 3.5% in the year to 30 September 2022 compared to a 7.3% decline in the FTSE All Share over the same period.
• The concentration of assets among the top 10 DFMs decreased this year due to the rise of faster growing, often lower priced, newer entrants. While the top 10 DFMs lost an average of £65m in AUM, the remaining 21 gained an average of £141m.
• Timeline Portfolios was the fastest growing DFM measured both by net asset growth and in percentage terms.

Our head of quantitative research, Alex Johnson, did some detailed analysis of pricing. He evidenced a significant decrease in the average cost of MPS with a particular drop in the OCF.

• The average price paid by the client has fallen from 1% to 0.67% in the past year.
• Most DFMs have reduced the range of the OCF in the past year. There was also a shift in allocation to passive.
• DFMs with lower overall charges have grown faster in the past year than those with higher fees

The following infographic highlights some of the key trends. The full report is available for purchase. You can download a sample here or email us for details.