Wealth management assets reach £1.24tn as MPS demand rises

The UK discretionary wealth management market reached £1.24tn in assets under management at the end of 2025, as adviser demand for model portfolios continued to grow.

Research from Platforum found that wealth managers are increasingly attracting business through third-party financial advisers outsourcing investment management, rather than relying solely on their own private clients.

Less than half, or 49%, of discretionary wealth management assets are now held in direct private client and charity or institutional portfolios.

Platform-based model portfolio services and multi-asset funds account for almost a third, or 32%, of total wealth management assets.

Platform MPS was the fastest-growing area of the market, with assets rising by nearly 24% during 2025.

Platforum said the Consumer Duty, industry consolidation and increased private equity ownership were encouraging both advisers and wealth managers to use more standardised and efficient investment propositions.

Annalise Toberman, associate research director at Platforum, said: “The days of the traditional stockbroker are over in UK wealth management.

“Wealth managers have become investment solutions providers. Their models and multi-asset funds tick boxes in terms of compliance, efficiency and cost.”

She said the solutions were attractive to advisers that no longer wanted to construct portfolios themselves, as well as wealth managers serving clients with smaller amounts to invest.

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The research also found that bespoke discretionary portfolio management is increasingly being reserved for wealthier or more complex clients.

Some wealth managers have raised minimum investment requirements for new bespoke clients to as much as £1m, while advisers are increasingly recommending MPS instead.

The average portfolio held by an advised client using a bespoke discretionary service has risen by 24% in two years to £710,000.

Although 38% of advisers recommend bespoke wealth management services, most do so for only a small proportion of clients.

The main reasons for using bespoke services include supporting high-net-worth clients, accessing a broader investment range and meeting demand for more personalised portfolios.

Toberman said advisers generally used bespoke services for large portfolios, clients with complex needs or legacy investments that would be difficult to sell without creating significant capital gains tax liabilities.

She added that demand could also increase as advisers review their retirement propositions and prepare for inheritance tax changes affecting pensions.

“We think the FCA’s retirement income advice review and the changes to IHT rules could make bespoke more appealing,” Toberman said.

“Wealth manager portfolio management support could play more of a role here.”