Morningstar’s annual study of UK managed portfolios reveals a decline in overall costs with an increase in passive investments. Managed portfolios are embracing passive funds to reduce costs. Sustainable and ethical funds are popular within managed portfolios, with a shift towards passive and blended portfolio launches. ETFs play a supporting role, especially for niche investment exposures. Active ETFs have limited presence in UK managed portfolios. Alternatives are used modestly, with a focus on liquid options. Managed Portfolio Services (MPS) are professionally run model portfolios for advisors, offering personalization and lower costs. MPS popularity has grown, with around 1,500 live portfolios from 70 providers. The market for MPS has matured, with a slowdown in portfolio launches post-2018.

Read more at Morningstar: UK Managed Portfolios Shift Toward ETFs as Costs Continue to Fall