Model Portfolio Service
Standardised portfolios run by DFMs on adviser platforms.
A Model Portfolio Service (MPS) is a discretionary investment management service in which a fund manager or DFM builds and rebalances a small number of pre-defined portfolios, and financial advisers allocate clients to the portfolio that matches their risk profile. The adviser retains the relationship with the client, provides the advice, and outsources portfolio construction, asset allocation and rebalancing to the MPS provider.
MPS sits between bespoke discretionary management (one portfolio per client, typically for AUM above £500k) and multi-asset funds (one fund for many clients, no ability to rebalance across holdings). For UK advisers, MPS has become the default investment proposition for mass-affluent clients with £50k to £500k invested, because it reduces in-house investment committee workload, creates defensible and auditable suitability evidence, and avoids regulatory exposure around discretionary permissions.
The adviser remains responsible for suitability of the MPS choice under COBS 9 and the Consumer Duty. Ongoing service includes quarterly or annual reviews, risk re-assessment, and confirmation that the selected risk-graded portfolio remains appropriate.
From a marketing perspective, advisers promoting an MPS-led proposition typically highlight cost transparency, rebalancing discipline, and independence from fund-house bias. Platforms such as 7IM, Tatton, Brewin Dolphin, Brooks Macdonald and Timeline dominate the UK MPS market, and adviser firms typically partner with one or two providers per risk scale.
See also: discretionary fund management, platform, risk profiling, suitability.