Abrdn is reducing the fee on its Abrdn MPS and Abrdn Sustainable MPS ranges on the Wrap and Elevate platforms from 1 December.

The Abrdn MPS fee will reduce from 25bps to 15bps and the Abrdn Sustainable MPS fee will reduce from 20 to 15bps.

The fee on the Abrdn Index and Abrdn Sustainable Index MPS ranges will remain at 10bps.

The reduction will apply automatically to existing customers on Wrap and Elevate. Any new clients that onboard into these solutions on the Abrdn platforms will also pay the new fee.

Russell Bignall, managing director at Abrdn, said the fund manager expects the popularity of its MPS ranges to grow following the FCA’s introduction of the new Consumer Duty

He said: “Our MPS ranges offer leading risk adjusted performance and given the requirement for firms to deliver and evidence good client outcomes under Consumer Duty we are committed to helping advisers with solutions that deliver. 

“We understand the challenges for advisers managing the risk of running their own in-house models whilst still achieving their business objectives. It is complex, costly and time consuming for an adviser and we are committed to supporting them with a range of easy to use solutions available on platform. 

“The recent FCA Dear CEO letter to Wealth Managers and Stockbrokers specifically calls out the need to design solutions around customers' level of risk and a focus on demonstrating value on fees and services.  Our MPS ranges are designed around customer risk levels and with the recent changes advisers can be confident they are placing their clients with a firm focussed on best practice FCA guidance.

“By outsourcing the investment proposition this reduces the operational risks within the adviser firm and leaves them free to focus on building relationships with clients, giving great financial advice and growing their business.”

Abrdn’s investments business reported a 15% fall in net operating revenue to £466m in the first half of 2023, due to lower average assets under management and net outflows, particularly in equities.

Net operating revenue for the overall business rose 4% to £721m, with growth in the adviser and direct businesses offsetting lower revenues in investments.