A new study by Rathbones shows that IFAs think their profession is best served by focusing on financial planning to help people managee changes in tax, pensions and estate planning rules. Rathbones has also launched an upgraded MPS.

UK financial advisors (IFAs) believe that having to focus on portfolio management is costing them new business and hindering their ability to help their clients with effective financial planning, according to a study conducted by UK wealth manager Rathbones.

The findings – from a new study of 100 independent financial advisors (IFAs) – coincides with the launch of Rathbones’ upgraded model portfolio service (MPS). This service enables financial advisors to offer their clients enhanced, actively managed solutions, the firm said in a statement.

The suite of seven MPS portfolios consolidates investment expertise at Rathbones into a single, streamlined proposition. This has been achieved at a competitive cost, with ongoing charges (OCF) capped at 0.5 per cent, without a discretionary fund manager (DFM) fee being applied.

Seventy-three per cent of financial advisors surveyed believe they could grow their business by up to 10 per cent annually if more of the time spent managing portfolios was reallocated to client acquisition and financial planning. Additionally, the survey revealed that 27 per cent said of IFAs could grow their client base by 11 to 20 per cent.

Against a backdrop of changing tax, pension, and estate planning rules, 94 per cent of advisors said their profession would be better served by addressing clients' financial planning needs rather than concentrating on day-to-day investment management.

The top challenges reported by IFAs relating to portfolio management are: time-consuming rebalancing (61 per cent), market responsiveness (55 per cent), and scalability (54 per cent).

“In today’s increasingly complex financial landscape, many advisors are stretched thin trying to balance investment management with comprehensive financial planning – often without the scale or support to do both effectively,” Andrea Yung, investment director at Rathbones and manager of the MPS, said.  “Rathbones’ upgraded MPS is designed to ease that burden, giving advisors access to actively managed, resilient investment solutions.”

Designed for advisors and their clients investing over the medium to long term, Rathbones’ MPS offers a range of actively managed portfolios aligned to diverse investment objectives and risk appetites – from adventurous to conservative.

The underlying funds powering each portfolio are managed by David Coombs, head of multi-asset investments at Rathbones Asset Management, alongside fund manager Will McIntosh-Whyte. The portfolios themselves are managed by Yung, who previously led MPS at Investec Wealth & Investment (IW&I).

Rathbones’ upgraded MPS is the first enhanced range of investment products unveiled by the group this year, building on its expanded capabilities, following the integration with IW&I.

Ninety per cent of IFAs surveyed expect to increase allocations to actively managed MPS solutions over the next three years. The main causes of this shift are economic uncertainty (73 per cent), rising market volatility (58 per cent), and demand for greater portfolio resilience (56 per cent), the survey reveals.