Introduction to Building Blocks
A modernised approach to Managed Portfolio Services
Brooks Macdonald has introduced a new Building Block fund structure for its Managed Portfolio Service (MPS) effective from 1st September 2026, representing one of the most significant enhancements made to the MPS proposition in recent years. The new structure modernises the way portfolios are implemented while keeping the core investment philosophy, risk framework and centralised investment process unchanged.
At the centre of the proposition are three UCITS Building Block funds, designed to provide a cleaner, more scalable and operationally efficient approach to portfolio construction. This structure allows access to a broader opportunity set, improves implementation consistency and enhances the overall client experience.
Constructed using three dedicated Building Block funds
The Building Block structure consists of three core UCITS funds aligned to the main areas of asset allocation:
• WS Brooks Macdonald Global Equities Fund
• WS Brooks Macdonald Global Fixed Income Fund
• WS Brooks Macdonald Alternatives Fund
Together, these funds form the foundation of portfolio construction across selected MPS ranges. The structure enables access to a broader range of asset classes and investment vehicles, while maintaining the same disciplined approach to investment research, governance and risk oversight.
The Building Block structure currently supports:
• Core MPS Active
• Volatility Managed MPS
• Risk Controlled MPS
Why we have introduced the Building Block structure
The move to Building Blocks is driven by four key considerations.
Broader investment opportunities
The new structure allows portfolios to access a wider range of asset classes and investment vehicles, including greater flexibility to utilise exchange traded funds, commodities, infrastructure, property and selected alternative assets where appropriate.
Improved implementation efficiency
Portfolio changes can be implemented centrally within the Building Block funds, allowing supported MPS portfolios to receive updates simultaneously.
Reduced operational risk
By reducing reliance on differing platform trading processes, dealing deadlines and settlement cycles, the structure improves trading control and consistency.
Greater scalability
The Building Block approach provides a more scalable framework for delivering portfolio management and supporting the long-term development of the proposition.
Benefits for advisers and clients
For clients, the Building Block structure provides:
• A simpler and more streamlined portfolio structure
• Improved diversification through access to a broader range of asset classes
• More consistent implementation of investment decisions
• Greater transparency through detailed portfolio look-through reporting
For advisers, the approach offers:
• Cleaner and more straightforward portfolio reporting
• Easier client conversations around portfolio construction
• Greater consistency across supported MPS ranges
• Reduced operational friction during portfolio rebalancing
• A scalable solution designed to meet evolving adviser and client needs
Importantly, while the structure of the portfolios is changing, the investment objectives, risk profiles and centralised investment process remain unchanged.
Commitment to investment discipline
The introduction of Building Blocks represents a change in how portfolios are implemented, not how they are managed.
The investment research process, governance framework and risk oversight remain unchanged. The new structure simply provides a more efficient and flexible way to implement investment decisions while maintaining the same focus on delivering consistent long-term outcomes for clients.
Support resources
We have developed a video to help advisers understand the Building Block structure and support client discussions.
Frequently Asked Questions
No. The centralised investment process, governance framework, investment objectives and risk management approach remain unchanged.
The structure brings portfolio construction together through three dedicated UCITS funds covering equities, fixed income and alternatives.
Clients benefit from a simplified portfolio structure, access to a broader range of investment opportunities, improved implementation consistency and enhanced transparency.
Core MPS Active, Volatility Managed MPS and Risk Controlled MPS.
Advisers can access factsheets, supporting materials and detailed look-through information showing the underlying holdings within each Building Block fund.
Yes. The architecture has been designed to provide greater consistency, efficiency and scalability while continuing to focus on client outcomes.
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