Investment provider Abrdn has launched a new MPS product, the Abrdn Money Market MPS, to meet client for a low risk MPS alternative to cash products.

The Money Market MPS will aim to deliver a return closely aligned to the Bank of England base rate, the firm says.

The Bank of England base rate is currently 5.25%.

The MPS is available on the Abrdn Wrap and Elevate platforms.

The Managed Portfolio Service will be available across all tax wrappers, the firm says, allowing advisers to 'mix and match' solutions alongside existing investment propositions.

There is no minimum investment amount and no notice period.

The portfolio will be rebalanced on a quarterly basis and the component money market funds will be reviewed regularly to ensure they meet the aims of the portfolio, Abrdn says.

The fund has an overall cost of 0.16% (excluding transaction costs).

Abrdn’s Money Market MPS bolsters the existing portfolio ranges which comprise three investment styles applied across four portfolio ranges, with five risk-assessed models in each range.

Russell Bignall, managing director at Abrdn, said: “In the current environment we know demand is increasing for low-risk cash like solutions to take advantage of high interest rates and that’s why we’ve launched the Abrdn Money Market MPS.

“It provides advisers with an additional solution to meet this demand and retain assets in one place. Via our platforms, advisers benefit from the capability to diversify portfolios to meet client needs and our investment management expertise.” 

Abrdn manages and administers £495bn of assets for clients (as at 31 December 2023). It has three business arms – Investments, Adviser and Personal. The Adviser business provides Financial Planning solutions and technology for UK financial advisers. As at 31 December 2023, the Adviser business administers £73.5bn of assets.