Advisers seeking co-manufactured MPS to meet individual client goals

The vast majority of financial advisers (91 per cent) say they value a strategic partner that can support the co-manufacturing of a managed portfolio service (MPS) aligned with their clients’ individual goals, according to new research from Charles Stanley.

Rather than relying solely on off-the-shelf solutions, the findings suggested advisers are increasingly looking for collaborative approaches that allow greater alignment with target markets and client objectives.

Charles Stanley, which is part of Raymond James Wealth Management, said its research had underlined how central MPS has become to advisers’ investment propositions, as client needs grow more diverse and outcomes more specific.

The results, based on a study of 500 financial advisers, revealed that alignment with target market suitability when reviewing MPS providers was advisers’ top consideration, as cited by 34 per cent.

This was closely followed by the ability to tailor investment portfolios to income or growth strategies (33 per cent), diversification across asset classes (32 per cent), and access to active solutions (32 per cent).

Charles Stanley said its research also highlighted the growing importance of flexibility within structured frameworks. Thirty-one per cent of advisers place great value on a risk-targeted range that is actively managed within defined volatility parameters. While the same number (31 per cent) of advisers are seeking the ability to tailor MPS solutions to specific requirements, including sustainability preferences, as well as targeted exposure to particular sectors.

Diversification of investment vehicles, including bonds, equities and funds, was cited by 30 per cent of advisers as a key feature. Other important considerations include rebalancing frequency (26 per cent), the use of passive solutions (26 per cent), and geographic diversification (24 per cent).

Head of product at Charles Stanley, Rebecca Stein, commented: “As client needs continue to become more nuanced, advisers are increasingly focused on how investment solutions are constructed and governed.

“The high level of interest in co-manufacturing reflects a desire for flexibility within a disciplined framework, bringing together risk management, diversification and the ability to adapt portfolios to income, growth or sustainability objectives. It points to a more collaborative model of MPS delivery, built around long-term partnerships rather than products alone.”

---