Our latest research breakfast, Around the Model in 36bps, brought together clients and industry peers at our London office for a closer look at how today’s U.K. model portfolios are being built from the ground up.
Led by Benjamin Reed-Hurwitz, CFA, and Jinesh Shah, the session drew on ISS Market Intelligence’s MarketPulse fee, expense, and model portfolio data to unpack what’s happening beneath the surface, from underlying fund selection to pricing pressure and evolving allocation decisions.
Below are a few key themes that stood out from the discussion.
Looking inside the model matters more than ever
Understanding fund flows alone is no longer enough. The real story sits within the model itself… how portfolios are assembled, how frequently they change, and what drives those decisions. From platform data to MPS insights, it is increasingly clear that asset managers need visibility not just into where assets are, but how they are being used.
Related: Three Critical Transitions Reshaping Asset Management in 2026
Active and passive are being blended with greater intention
The conversation has moved well beyond a simple active versus passive debate. Instead, allocators are combining both in ways that reflect specific portfolio objectives and cost targets. The balance is becoming more deliberate, with pricing, liquidity, and role within the portfolio all playing a part in fund selection.
Fee pressure continues to shape outcomes
The “36bps” lens resonated strongly throughout the session. Cost remains a central factor in portfolio design, but not in isolation. What matters now is how fees relate to the value delivered at the portfolio level. Managers that can clearly position their role within a broader allocation, and justify pricing in that context, are better placed to compete for inclusion.
Read more about Asset Allocation Shifts in in our related blog: What U.K. Fund Managers Need to Know as Allocator Dynamics Shift in 2026
Across the discussion, one point came through consistently: model portfolios are becoming the focal point of portfolio construction in the U.K., and understanding them requires a more granular, data-driven approach.
As portfolio construction continues to evolve, success will depend on how well asset managers align their products with the needs of model builders, not just at the strategy level, but within the structure of the portfolios themselves.
A big thank you to everyone who joined us in London.
To understand how fund flows are evolving, who controls portfolio construction, and how to engage the right buyers with the right message across the U.K. financial landscape, learn more about the Pridham Report and the Portfolio Construction Report from ISS Market Intelligence.
MarketPulse’s global database includes detailed fee and expense data as part of 2,000+ data points on 120,000+ financial products across 45+ markets. Asset managers use this intelligence for customized benchmarking and analysis, all within a single platform.
Author:
Benjamin Reed-Hurwitz, CFA, Head of Research Development, ISS Market Intelligence
