Shard Capital Podcast: Model Portfolio Service (MPS) solutions
In this week’s Shard Capital Lite-Bite Podcast, Ernst Knacke, Head of Research at Shard Capital and LeifBridge, asks Richard Bacon, Head of Sales and Development at Shard Capital “Are low-cost investment solutions about to get expensive?”
Richard highlights the fact that Model Portfolio Service (MPS) solutions have been the fastest growing area of the retail market in recent years, showing 25% and 26% growth in 2020 and 2021 respectively. Figures that are exaggerated by existing client assets being switched in to these lower cost solutions.
However, are market conditions about to expose these “appealing” products? Is “low cost” really low cost when your capital is being eroded? And what does “value” mean? A headline annual management fee measured in basis points, when the market is moving 100bps per day?
Listen in on the conversation below:
References:
- https://www.platforum.co.uk/uk_wealth_management/the-trends-in-dfm-mps-pricing
- https://www.moneymarketing.co.uk/opinion/where-next-for-platform-managed-portfolio-services/
- https://www.moneymarketing.co.uk/opinion/platforum-how-to-stand-out-without-slashing-fees/
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