In 2025, advisers have had to navigate a landscape that’s shifting faster than ever, with both markets and clients demanding more attention. Interest rates, inflation, and geopolitical risks have combined to create an environment where Advisers, Clients and their portfolios can no longer afford to stand still.
Attracting new clients has never been easy and, in today’s environment of DIY investing, fee scrutiny, and the immergence of AI, it may seem like things are getting even harder. Yet more volatility, rapidly changing geopolitics and shifting market dynamics may mean that financial advice is more vital than ever before.
Current Market Challenges & Opportunities
The Bank of England’s recent interest rate cut to 4%, the lowest level since March 2023, has prompted many savers to consider cash vs other risk assets. Meanwhile, global equity markets have begun the process of upending long-held asset allocation assumptions. Many clients have begun to question whether they have the time, tools, or expertise to keep pace, potentially opening the door for advisers to demonstrate the value they can bring.
For much of the past decade, the S&P 500’s dominance made a compelling case for sticking with a US-heavy, passive approach. However, this year diversification has paid off handsomely. The rest of the world has outperformed the US by a significant margin, with standout returns from South Korea (31.45%), South Africa (30.57%), and Latin America (22.45%). These markets, often under-owned, have delivered gains far exceeding those of traditional large-cap US equities – particularly for Sterling investors.
Year to date Performance Line Chart
Against this backdrop, the argument for a more balanced, actively managed approach has never been stronger, not just for delivering returns, but for improving client engagement and retention. Cost-conscious investors are beginning to see the value in professional oversight and today’s market conditions make the case for active fund holdings and professional advice harder to ignore. The challenge for advisers is finding solutions that bridge this gap: providing the agility needed in fast-moving markets at an attractive price point to help open the door to more clients.
What Approach Makes Sense Right Now?
Blended portfolios combine index funds with active management, keeping costs low while adding flexibility. They help capture opportunities beyond the usual benchmarks without losing control of costs.
A New way IBOSS is Helping Advisers Meet Today’s Challenges
Launched on 30th June 2025, the IBOSS Blended MPS was designed specifically to address these adviser and client needs. By combining our established Core and Passive strategies into one hybrid solution, the range delivers the diversification, oversight, and consistency advisers expect from IBOSS at a lower total cost.
Though we have one of the most dynamic passive ranges in the MPS space, the blend incorporates 50% of our core range. The outcome is a portfolio with passive exposure ranging from 42%–57%, ensuring clients still benefit from a high proportion of genuine active fund management; a split that surprisingly isn’t common in the marketplace.
Why advisers asked for it:
- Many so-called “blended” ranges in the market are dominated by passive funds (sometimes up to 90% of the total portfolio) leaving little room for genuine active input.
- Advisers told us they wanted a pre-packaged, truly balanced solution combining active and passive strategies, without the complexity and manual work of building it themselves.
- A low-cost solution that still delivers the IBOSS hallmarks of diversification and proven asset allocation without being a purely passive offering.
Why it matters for clients:
- It makes high-quality, actively managed portfolios more accessible, with total costs averaging up to 30% lower than our Core MPS range.
- Provides an appealing option for cost-conscious investors moving from purely passive strategies to benefit from professional oversight and diversification.
- Helps bridge the advice gap for those who may have otherwise stayed in cash, giving them access to a solution that can work harder for their money.
As with all our products, the Blended MPS reflects the IBOSS philosophy: combining robust diversification with the aim of outperforming relevant benchmarks over as many periods as possible, while keeping volatility and drawdowns lower than the benchmark.
If you’d like to learn more about how the IBOSS Blended MPS can help meet your clients’ needs in today’s market, you can contact our team at enquiries@ibossltd.co.uk.
This communication is designed for professional financial advisers only and is not approved for direct marketing with individual clients. These investments are not suitable for everyone, and you should obtain expert advice from a professional financial adviser. Investments are intended to be held over a medium to long term timescale, taking into account the minimum period of time designated by the risk rating of the particular fund or portfolio, although this does not provide any guarantee that your objectives will be met. Please note that the content is based on the author’s opinion and is not intended as investment advice. It remains the responsibility of the financial adviser to verify the accuracy of the information and assess whether the OEIC fund or discretionary fund management model portfolio is suitable and appropriate for their customer.
Past performance is not a reliable indicator of future performance. The value of investments and the income derived from them can fall as well as rise, and investors may get back less than they invested.
IBOSS Asset Management Limited is authorised and regulated by the Financial Conduct Authority. Financial Services Register Number 697866.
IBOSS Asset Management Limited is owned by Kingswood Holdings Limited, incorporated in Guernsey (registered number: 42316).
Registered Office is: 2 Sceptre House, Hornbeam Square North, Harrogate, HG2 8PB. Registered in England No: 6427223.
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