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 the year to date to the end of Q3 2024.
Despite having dropped a place at the end of Q2, the most popular fund in 2023, Fundsmith, managed by Terry Smith, has reclaimed the top step, dropping the Vanguard LifeStrategy 100% Equity fund back down to second. The size and breadth of single asset investment solutions is vast, and yet this quarter, there is only one new entry – the Royal London Corporate Bond fund, last seen in the top 10 most favoured solutions in 2023.
Interestingly, given the broad array of investment solutions, the top 10 table clearly indicates that advisers prefer passives and index trackers, possibly due to lower costs and considerations around Consumer Duty.
| Rank | Proposition Name | Position end of Q2 2024 | Movement up/down | % Share of Top 10 |
| 1 | Fundsmith Equity | 2 | +1 | 13.94% |
| 2 | Vanguard LifeStrategy 100% Equity | 1 | -1 | 13.39% |
| 3 | Vanguard US Equity Index | 3 | – | 12.96% |
| 4 | HSBC American Index | 4 | – | 12.47% |
| 5 | L&G Global 100 Index | 5 | – | 11.88% |
| 6 | L&G Global Technology Index | 6 | – | 9.46% |
| 7 | Fidelity Index World | 7 | – | 7.96% |
| 8 | Royal London Corporate Bond | 14 | +6 | 6.23% |
| 9 | Royal London Short Term Money Market | 8 | -1 | 6.08% |
| 10 | Royal London Global Equity Diversified | 10 | – | 5.58% |
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:
“Surprisingly, positive sentiment in global markets has persisted throughout the year. This is despite continuing geo-political uncertainty, interest rates reducing slower than many had predicted, and concerns around whether the US would enter a recession. And yet despite so much attention still being on the US from a broader economic perspective; advisers are indicating a preference for the US either directly or indirectly through broader global solutions, with many of the key underlying holdings of the solutions in the top 10 clearly aligned to a growth and technology bias.
“What does remain noticeable, is that despite continuing to be an attractive opportunity from an equity valuation standpoint, advisers overall still appear to be avoiding UK-focussed equity solutions, given the lack of visibility within the top 10. As we approach the backend of 2024, with a new government, inflation close to its target and the potential for further rate cuts, will we see advisers start to look towards the home bias?”
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, and 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 £50bn annually go through the system.
More information about Defaqto Engage can be found at www.defaqto.com/solutions/engage
