Defaqto, one of the UK’s most trusted sources of financial product and market intelligence, has identified the top 10 most recommended multi-asset investment solutions by value in Q1 2024.
The first quarter of 2024 has seen very little change compared with the most recommended multi-asset solutions in 2023, with only two new entrants to the top 10.
Retaining the number one spot is the behemoth Vanguard LifeStrategy 60% Equityfund, clearly demonstrating that despite the difficulties of 2022, where the traditional negative correlation of equities and bonds broke down, advisers clearly see this type of strategy as a core component when recommending a diversified portfolio. Interestingly, when comparing the overall value of recommendations for the top 10, the three Vanguard solutions represented, account for 37% of the total value, clearly showing the provider’s popularity amongst advisers both from a consistency of returns and low cost perspective.
The data is drawn from Defaqto Engage; the adviser research software used by more than 30% of advisers in the UK to help their clients make smarter financial decisions. It depicts the most popular multi-asset investment solutions chosen through the research software, by a representational cross section of the UK financial adviser market.
Andy Parsons, Insight Manager (Funds & DFM) at Defaqto, commented:
“Often perceived as the alternative solution for those advisers who prefer not to use an MPS proposition, the top 10 is represented by six different providers. Vanguard leads the way with three solutions, whereas both HSBC and BNY Mellon are represented twice. Overall, we see two new entrants in the shape of the Artemis Monthly Distribution, and the VT AJ Bell Balanced solution.
“Interestingly, only one solution within the top 10 has a yield currently in excess of 4%, that being the Artemis Monthly Distribution at c.4.7%. And in a year where so much regulatory focus will turn to the new SDR rules in the summer, two of the top 10 are sustainable solutions, clearly showing that advisers and their clients do want to be seen to be making a difference to the world in which they live and the legacy they can leave for the future generations.”
Defaqto Engage consolidates all the information advisers need into one software solution, providing a comprehensive holistic service. It gives advisers the power to model a client’s financial objectives, capture risk profiles, conduct investment research, and oversee client reviews – all from one place.
Powered by Defaqto’s data, including more than 18,000 funds, 2,700 DFM MPS portfolios, platforms and products, Defaqto Engage is recognised by advisers as a trusted source of financial product and market intelligence. Recommendations of £43bn annually go through the system.
More information about Defaqto Engage can be found at www.defaqto.com/solutions/engage
