As we move through 2025, the investment landscape continues to evolve, shaped by regulatory changes, technological advancements and shifting client expectations. For financial advisers, the challenge is no longer just about constructing portfolios. It’ s about building resilient, future-proof businesses. In this context, multi-asset investing has transformed from a product-led approach into a strategic partnership model.

Understanding the challenges advisers face

In our conversations with clients and partners, we consistently hear about three core challenges:

1. Regulation – From the Retail Distribution Review( RDR) to the Consumer Duty, the regulatory landscape has become more demanding. Advisers must now evidence suitability, value for money and client-centricity with greater rigour.

2. Efficiency – With increasing pressure on margins, firms are seeking ways to streamline operations, reduce administrative burdens and scale effectively.

3. Client outcomes – Delivering consistent, compelling outcomes is essential.

At the heart of all three lies a common thread: risk management. Whether it’ s investment risk, operational risk, or commercial risk, advisers are looking for ways to reduce friction and increase resilience.

The rise of multi-asset outsourcing: a structural shift

Model portfolio services( MPS) and multi-asset funds have emerged as powerful solutions to these challenges. Since RDR in 2013, the options within the MPS market have grown at least sevenfold and there has been a similar shift towards multi-asset funds, driven by a structural shift towards outsourcing in a controlled, strategic way 1. This growth has continued through periods of extreme volatility, including the COVID-19 pandemic and the market shocks of 2022, underscoring the resilience and relevance of this approach.

When L & G launched its MPS proposition in 2021, we entered a mature and competitive market. But we did so in response to client demand, particularly from those already familiar with our multi-index solutions, which have delivered cost-effective, risk-managed solutions since 2013. These clients weren’ t just looking for a product, they were looking for a partner to address their key challenges moving forwards.

66 | The Adviser