U.K. Model Portfolios Outperform Overall Fund Sales, ISS Market Intelligence Finds

LONDON (19 March 2024) – ISS Market Intelligence (ISS MI), a leading global provider of data, analytics, insights, media, and events solutions to the global financial services industry, announces the publication of its third U.K. Model Portfolio Sales Report, examining trends in the U.K. model portfolio market in 2023.

The report highlights a significant surge in model portfolio investment fund sales in the second half of the year, an 11% growth compared to 2% for the entire investment fund channel on a trailing six-month gross sales basis. Model portfolio sales comprised 53% of all investment fund sales in the second half of the year.

Advisers are increasingly insourcing their model portfolio needs, with insourced solutions accounting for 60% of sales. However, there has also been an expansion in outsourcing, with a 9% increase in the number of adviser firms using 5+ model providers.

Passive funds have also made considerable gains, representing 37% of gross investment fund sales by the end of the fourth quarter, a 3% share increase from the first half of the year. Notably, passive funds accounted for the majority of the twenty best-selling funds and were concentrated among a few fund managers.

The report analysed the best-selling model providers and fund managers by six-month model gross sales. On that basis, the best-selling model providers between July 1, 2023, and January 1, 2024, were found to be:

1. Tatton
2. Quilter
3. Financial Express
4. LGT
5. Timeline Portfolios

The report found the best-selling fund managers for the same period, also by gross sales, to be:

1. Vanguard Asset Management
2. BlackRock Investment Management
3. Legal & General Investment Management
4. Tatton Investment Management
5. Quilter Investors
6. Fidelity International
7. Royal London Asset Management
8. HSBC Global Asset Management
9. M&G Investments
10. Dimensional Fund Advisors

“2023 was another transformative year for the U.K. model portfolio market, with significant shifts in adviser preferences and the rise of passive funds. ISS MI’s data underscores the importance of agility and innovation for providers looking to thrive in this evolving landscape,” said Benjamin Reed-Hurwitz, Associate Director, EMEA Research at ISS MI. 

Learn more about the U.K. Model Portfolio Report here, or contact mi_emeasales@issmarketintelligence.com.

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About ISS Market Intelligence
ISS Market Intelligence (ISS MI) is a leading provider of data, insights, and market engagement solutions to the global financial services industry. ISS MI empowers asset and wealth management firms, insurance companies, distributors, service providers, and technology firms to assess their target markets, identify and analyze the best opportunities within those markets, and execute on comprehensive go-to-market initiatives to grow their business. Clients benefit from our increasingly connected global platform that leverages a combination of proprietary data, powerful analytics, timely and relevant insights, in-depth research, as well as an extensive suite of industry-leading media brands that deliver unmatched market connectivity through news and editorial content, events, training, ratings, and awards.

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