The Transact–BlackRock MPS update

The accelerating shift to outsourced investment management

The way advice firms manage client portfolios is changing. Increasingly, firms are questioning whether building and maintaining investment models in-house remains the best use of their time, expertise and resources, particularly as specialist discretionary investment management becomes more accessible and competitively priced. The shift is substantial. Platform MPS assets exceeded £214 billion by the end of 2025 and now account for more than a quarter of advised assets held on investment platforms. The market has grown 20-fold over the last decade, with assets increasing by 293% in the past six years¹.

The same trend is evident on Transact. Assets held with third-party DIMs on the platform have more than doubled over the last five years, while adviser-run models have remained broadly unchanged².

Although adviser-managed portfolios continue to represent a meaningful part of the market, the growth in outsourced solutions reflects changing priorities across many firms.

1 - Platforum, UK Wealth Management: Platform MPS Report, reported by Money Marketing, "Advisers push platform MPS market past £214bn", 21 May 2026

2 - Transact internal analysis as at 31 December 2025. Over the five years to 31 December 2025, assets held within DIM-linked templates increased by 219%, while assets held within non-DIM templates were broadly flat, declining by 4% over the same period.

What is driving the move to third-party DIMs?

Outsourcing will not suit every firm or client, but several common drivers are emerging.

More time for financial planning. Financial planning increasingly demands advisers’ time, while running portfolios requires research, monitoring, rebalancing and governance.

A specialist DIM can manage investments day by day, leaving advisers to focus on clients while retaining responsibility for suitability.

Increasing governance and regulatory expectations. Professional oversight, structured governance and transparent reporting can support firms in evidencing suitability, value and good client outcomes, although advisers retain their regulatory responsibilities.

Lower costs and greater choice. Competition, passive investments and scale have broadened choice and reduced costs. Hybrid and passive MPS solutions remain popular, and industry analysis suggests firms costing below 50 basis points grew faster than higher-priced alternatives, reinforcing the importance of value.

Operational consistency and scalability. An outsourced MPS can provide a repeatable approach to portfolio construction, monitoring and rebalancing, helping growing firms’ scale without recreating every investment function internally.

It may also reduce the need for individual client approval for permitted DIM changes, subject to the service terms and client agreement.

How the Transact – BlackRock MPS supports your CIP

The service uses passive funds and ETFs to keep implementation costs low, while BlackRock actively manages allocation and portfolio risk. Four features are central to the proposition.

1. Broader and more granular diversification

BlackRock diversifies across asset classes, regions, sectors, factors and currencies, recognising that similar headline allocations can contain very different risks.

This granular approach provides a broader foundation for managing risk and return, although diversification cannot prevent losses or guarantee outperformance.

2. Active and dynamic asset allocation

BlackRock monitors markets and can adjust regional equities, fixed income, duration, factors and currency hedging within each model’s risk parameters.

The underlying investments may be passive, but portfolio construction, allocation and risk management remain active.

3. BlackRock expertise at a competitive cost

Advisers gain access to BlackRock’s multi-asset, research, portfolio-construction and risk-management expertise. BlackRock’s investment management fee is 0.06%, while the OCF for underlying investments is capped at 0.20% at rebalance.

The differentiation lies in combining cost-efficient implementation with active allocation and detailed risk management.

4. Reporting, evidence and practical adviser support

Transact provides marketing collateral, due-diligence support, investment commentaries and reports to support client communications and ongoing suitability.

Dedicated onboarding and ongoing support help firms understand and operate the service efficiently.

Is it time to review your investment proposition?

If you are reviewing your investment proposition or considering whether outsourcing could support your firm, the Transact – BlackRock MPS could help by combining cost-efficient implementation with active asset allocation, broad diversification, BlackRock’s investment expertise and dedicated Transact support.

For more information, visit our dedicated landing page on Transact by heading to: Templates > Transact – BlackRock MPS, or get in touch via the contact details below to discuss how the service could support your firm.

Autumn Retirement Strategies Lunches

Following the success of the Spring and Summer programme, our Retirement Strategies Lunches will continue throughout the Autumn.

Hosted jointly by Transact and BlackRock, the sessions bring together investment and technical planning expertise to explore retirement investing, cashflow planning and withdrawal strategies in a practical adviser-focused format.

Upcoming locations include:

Unstructured CPD accreditation will be available to all attendees.