Why Model Portfolio Service and why now?

22 September 2025

A simpler, more efficient way to deliver consistent outcomes for your clients.

Advisers today are juggling more than ever, from tighter regulations to changing client expectations. It’s no wonder so many firms are rethinking how they manage client portfolios.

The re-launched Rathbones Model Portfolio Service (MPS) on Platform offers a smarter, more flexible solution – one that tackles the common limitations of traditional MPS approaches while giving you greater control and clarity.

Article last updated 30 September 2025.

Why revisit MPS now?

The on-platform MPS market has grown rapidly over the past few years. It’s now a familiar part of many advice firms’ propositions, offering efficiency, consistency and support with Consumer Duty. But as the market matures, so do the questions. Advisers are asking:

Is the service truly adding value?
Does the structure support smooth administration?
Can it adapt to meet client needs or is it introducing unnecessary friction?

With a saturated market of lookalike solutions, the opportunity is no longer about simply offering MPS. It’s about offering the right MPS – one that genuinely makes your advice process easier, not harder.

Active management without the added cost

Rathbones MPS offers full active investment management at a capped ongoing charges figure (OCF) of 0.50%. There’s no discretionary fund manager fee, no VAT, and no need for clients to hold separate cash to pay these charges. Instead, fees accrue daily from within the underlying funds.

This structure removes unnecessary complexity and cost, making the service both transparent and easy to administer for you and your clients.

Model Portfolio Service on Platforms

Addressing the pain points of typical MPS models

Many MPS providers construct portfolios from a mix of third-party funds. While this approach offers diversification on paper, it often introduces hidden challenges. You might recognise some of these issues:

Overlap across third-party fund holdings
Clients temporarily out of market during every rebalancing
Unpredictable Capital Gains Tax (CGT) crystallisation from external fund switching
Administrative drag when switching between funds or platforms

At Rathbones, we’ve designed our re-launched MPS to address these head-on. Each portfolio is built using three in-house funds aligned to our Liquidity, Equity-type risk and Diversifiers (LED) framework. These funds are not single-strategy holdings, but portfolios in themselves. Each serves a clear role and is managed by the same team behind our flagship multi-asset funds.

This approach gives us full control over asset allocation, risk alignment and implementation, meaning:

Minimal duplication of holdings
Enhanced risk management
Reduced CGT crystallisation, with changes made within the fund
Less time out of market during portfolio changes
Lower operational burden for you and your team

It’s a practical, well-structured solution that delivers a more stable client experience and a simpler advice journey.

Whether you’re streamlining your Centralised Investment Proposition (CIP) or looking to extend your investment approach to clients with smaller portfolios, Rathbones MPS is built to fit around your business

A service built around how advisers work

Whether you’re streamlining your Centralised Investment Proposition (CIP) or looking to extend your investment approach to clients with smaller portfolios, Rathbones MPS is built to fit around your business. You benefit from:

A clear set of seven risk-aligned portfolios
Regular oversight and ongoing management from the Rathbones investment team
Transparent reporting and client-friendly explanations
Fewer moving parts, with full look-through and lower turnover

We’ve also designed the service to support Consumer Duty requirements, with regular factsheets, performance insights and client materials that help you demonstrate value with confidence.

Why Rathbones and why this structure?

This isn’t a repackaged version of our multi-asset funds. It’s a purpose-built MPS solution that draws on our investment philosophy while offering a different route to implementation, tailored for advisers who prefer to operate on platform.

Unlike typical fund-of-funds models, our structure allows us to manage investments at the component level. That means we can fine-tune risk, adjust positioning and implement decisions efficiently without triggering unnecessary trading or CGT events at the client level.

As a result, you get the benefits of active management and diversification, but without the layers of cost or operational friction.

For more information on our service please visit: Rathbones Model Portfolio Service on Platforms

Explore Rathbones MPS

What next?

To explore how the new Rathbones MPS can support your advice process, please speak to your Rathbones Business development director or complete the form and our dedicated adviser support team will be in touch. We’re here to help you deliver better outcomes with confidence for your clients, your team and your business.

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