Defaqto, one of the UK’s most trusted sources of financial product and market intelligence, has identified the top 10 most recommended single asset funds by value for 2023.
Terry Smith and his behemoth Fundsmith Equity fund proved to be the most recommended single asset fund in 2023, followed by HSBC American Index. Within the active vs passive debate, active edged it by six solutions to four. Interestingly, only one debt fund made the top 10 in the shape of the Royal London Corporate Bond fund.
| Position | Proposition Name | % Share of Top 10 |
| 1 | Fundsmith Equity | 20.69 |
| 2 | HSBC American index | 15.04 |
| 3 | Vanguard Lifestrategy 100% Equity | 12.69 |
| 4 | WS Lindsell Train UK Equity | 8.86 |
| 5 | Fidelity Index World | 8.34 |
| 6 | Royal London Corporate Bond | 7.28 |
| 7 | TM Natixis Loomis Sayles US Equity Leaders | 7.15 |
| 8 | JPM Emerging Markets Income | 6.85 |
| 9 | BlackRock European Dynamic | 6.59 |
| 10 | JPM US Select | 6.51 |
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 single asset 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:
“At the start of 2023, the vast majority of economic forecasts painted a picture of global recessions, however, as we moved through the year it became apparent these had been avoided, albeit uncertainty still remains as to whether they will surface in 2024. For stock markets, despite all the initial gloomy predictions, many managed to provide double digit growth, though the key outlier was the UK which significantly lagged its main competitors. Over in the US, the vast majority of growth came about from what was termed the magnificent seven (Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla & Meta) and the rise and impact of AI (artificial intelligence).
“Interestingly, with the majority of the propositions having a very clear prominence and focus on quality and growth investments, there was still an appetite for seeking income and whilst the appearance of a bond fund is unsurprising, the appearance of an Emerging Markets income solution may come as a surprise to many.
“The final observation, is that despite being a completely unloved and predominantly undervalued market, the UK did find representation within the Top 10 in the shape of the WS Lindsell Train UK Equity fund, managed by the highly regarded Nick Train.”
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 £42bn annually go through the system.
More information about Defaqto Engage can be found at www.defaqto.com/solutions/engage
