W1M Adviser Service and Investment Team Highlighted in Defaqto MPS Survey
Key takeaways
Independent recognition of W1M's strengths. W1M was ranked third overall for adviser service in Defaqto's DFM Satisfaction Study and was recognised as a top-scoring DFM for investment team quality, reinforcing the strength of both its client support and investment expertise.
MPS continues to dominate adviser portfolios. Managed Portfolio Services now account for 53% of adviser investment assets, highlighting the growing importance of MPS solutions and the increasing demand for scalable, professionally managed investment propositions.
Retirement planning is driving future MPS growth. As the proportion of clients in decumulation rises, advisers are placing greater emphasis on retirement-focused solutions. W1M's dedicated Retirement MPS range is designed to help address key challenges including longevity, inflation and sequencing risk, positioning advisers to meet evolving client needs.
The latest Defaqto In Focus: MPS report has provided strong independent recognition of W1M’s adviser service and investment expertise. It also highlights the growing importance of Managed Portfolio Services within the UK advice market.
In Defaqto’s DFM Satisfaction Study, W1M ranked third overall for adviser service. The quality of W1M’s investment team was also recognised, with the firm named as a top scoring DFM for “Quality of staff: Investment”. This was one of the most important areas for advisers surveyed, receiving an importance score of 4.68 out of 5.
The findings come as MPS continues to play a larger role in adviser businesses. Among those surveyed, 53% of investment value is now held within MPS, compared with 14% in bespoke discretionary solutions and 30% in advisory solutions. Defaqto also expects the development of more solutions designed specifically for clients in decumulation to support further growth.
The retirement market is an increasingly important part of this picture. Adviser investment business currently averages 63% accumulation and 37% decumulation, with the proportion in decumulation expected to rise. The report also points to the growing need for advisers to consider how their Centralised Retirement Proposition differs from their Centralised Investment Proposition.
The W1M MPS manages over £6 billion across 28 third-party platforms, providing advisers with access to a competitively priced range of global, active portfolios with clear CPI plus objectives. Our investment approach is deliberately different, investing predominantly in direct equities, bonds and alternatives rather than relying on a traditional fund of funds structure. This reflects our belief in the benefits of genuinely active investment management and gives advisers a clearly differentiated proposition for their clients.
Alongside our established MPS, we have introduced four Retirement MPS portfolios, designed specifically for clients approaching or already in retirement. The range combines the investment approach and experience of our existing MPS with a dedicated focus on the particular challenges clients face when taking an income, including longevity, inflation and sequencing risk.
The Defaqto findings provide welcome independent recognition of the quality of our adviser service and investment team, while reinforcing our continued focus on delivering investment solutions that meet the changing needs of advisers and their clients.
If you would like a copy of the report, or to discuss W1M and our Managed Portfolio Service, please email your local business development manager or email advisersolutions@w1m.com.
Glossary
Managed Portfolio Service (MPS): A professionally managed investment portfolio that allows advisers to outsource day-to-day investment decisions while maintaining control of the client relationship.
Decumulation: The stage of investing where clients begin drawing an income from their pension or investments, typically during retirement.
Sequencing Risk: The risk that poor investment returns occur early in retirement, potentially reducing the longevity of a portfolio when withdrawals are being taken.
This material is provided for informational purposes only and does not constitute investment advice or a recommendation. The views expressed reflect current market conditions and are subject to change without notice.
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Past performance is not a reliable indicator of future results. The value of investments and the income derived from them may rise as well as fall, and investors may not get back the amount originally invested. Capital security is not guaranteed.
