Defaqto, one of the UK’s most trusted sources of financial product and market intelligence, has identified the top 10 most recommended platform managed portfolio solutions (MPS), multi-asset investment and single asset funds by value in Q1 2024.
10 recommended MPS investments in Q1 2024
All change at the top. Having been the sixth most popular MPS investment solution in 2023, the Tatton Core Active solution, now finds itself the most recommended in Q1 2024, closely followed by its stablemate the Tatton Core Balanced solution. The highest new entrant is Timeline Tracker 50, whilst the most recommended solution in 2023 has dropped four places to fifth. Overall, the first quarter of 2024 has seen four new entrants appear, with the two most notable climbers in respect of positions from end of 2023 being Rockhold Active Adventurous and Albemarle ASPIM Growth 6 solutions.
|
Position Q1 2024 |
Proposition Name |
Position end 2023 |
Movement up / down |
% Share of Top 10 |
|
1 |
Tatton Core Active |
6 |
+5 |
15.7 |
|
2 |
Tatton Core Balanced |
3 |
+1 |
12.9 |
|
3 |
Timeline Tracker 50 |
56 |
+53 |
10.5 |
|
4 |
AJ Bell Passive MPS 4 |
15 |
+11 |
9.7 |
|
5 |
Timeline Classic 50 |
1 |
-4 |
9.6 |
|
6 |
Rockhold Active Adventurous |
205 |
+199 |
9.5 |
|
7 |
Brewin Dolphin MPS Balanced |
4 |
-3 |
8.3 |
|
8 |
Tatton Tracker Balanced |
8 |
- |
8.2 |
|
9 |
Brewin Dolphin MPS Growth |
2 |
-7 |
8.1 |
|
10 |
Albemarle ASPIM Growth 6 |
67 |
+57 |
7.6 |
*
Andy Parsons, Insight Manager (Funds & DFM) at Defaqto, commented:
“As the table clearly shows, there are a variety of investment solutions being chosen across a multitude of varying styles and risk levels. Leading the way is Tatton with three solutions in the top 10, whilst the likes of Brewin Dolphin and Timeline are represented twice.
“In an advisory world, where time is becoming an even scarcer resource, due to an ever-increasing regulatory workload, clients rightly expect investment solutions that deliver in terms of associated risk, performance, and cost. Advisers are understandably seeking out investment solutions where all the tough challenges of asset allocation, geographical and sector preference, growth versus value and mega cap versus small is done for them.
“The expansion of the MPS arena will undoubtedly continue throughout 2024 and its important that advisers are assisted in their decision making, due diligence and comparisons of potential solutions.”
10 recommended Multi-Asset investment solutions 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% Equity fund, 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.
|
Position Q1 2024 |
Proposition Name |
Position end of 2023 |
Movement up/down |
% Share of Top 10 |
|
1 |
Vanguard LifeStrategy 60% Equity |
1 |
- |
15.7 |
|
2 |
Vanguard LifeStrategy 80% Equity |
2 |
- |
15.5 |
|
3 |
HSBC Global Strategy Balanced |
4 |
+1 |
14.5 |
|
4 |
HSBC Global Strategy Dynamic |
9 |
+5 |
11.6 |
|
5 |
Artemis Monthly Distribution |
18 |
+13 |
10.8 |
|
6 |
BNY Mellon Multi-Asset Balanced |
3 |
-3 |
8.2 |
|
7 |
VT AJ Bell Balanced |
17 |
+10 |
6.5 |
|
8 |
Royal London Sustainable Diversified |
8 |
- |
5.9 |
|
9 |
Vanguard SustainableLife 60-70% Equity |
6 |
-3 |
5.8 |
|
10 |
BNY Mellon Multi-Asset Growth |
10 |
- |
5.5 |
*
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.”
10 recommended Single Asset investment solutions in Q1 2024
Retaining the position at the head of the table for Q1 2024 is Terry Smith and his behemoth Fundsmith Equity fund, focusing on high quality, resilient growth companies, through a high conviction and concentrated approach. Evaluating the first quarter of the calendar year, within the active versus passive debate, passive has edged it by six solutions to four, whilst from a debt perspective, there were two new entrants in the shape of the Royal London Short Durations Global Index Linked and M&G Strategic Corporate Bond solutions.
|
Position |
Proposition Name |
Position end of 2023 |
Movement up/down |
% Share of Top 10 |
|
1 |
Fundsmith Equity |
1 |
- |
19.6 |
|
2 |
Vanguard US Equity Index |
15 |
+13 |
13.7 |
|
3 |
HSBC American Index |
2 |
-1 |
10.7 |
|
4 |
L&G Global Technology Index |
50 |
+46 |
10.3 |
|
5 |
Fidelity Index World |
5 |
- |
9.4 |
|
6 |
L&G Global 100 Index |
21 |
+15 |
8.8 |
|
7 |
Vanguard LifeStrategy 100% Equity |
3 |
-4 |
8.2 |
|
8 |
Royal London Short Duration Global Index Linked |
62 |
+54 |
6.6 |
|
9 |
M&G Strategic Corporate Bond |
55 |
+46 |
6.5 |
|
10 |
Royal London Sustainable Leaders |
217 |
+207 |
6.3 |
*
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:
“The positive sentiment that took over the markets towards the back end of 2023 carried through into the first quarter of 2024, with many investors still favouring the US, Japan, Global and Technology focused themes. Nvidia, the stock that provided so many headlines and significant returns for investors last year, has continued its surge north in Q1, delivering in excess of 80% already and is featured within five of the top 10 solutions.
“Aside from the continued focus on growth and technology, interestingly there were six new entrants within the top 10, two of which are debt solutions, whilst three of the other four are index trackers, clearly showing the appetite for lower costs. The final and most notable climber in terms of places is the Royal London Sustainable Leaders which has risen 207 places since the end of 2023 to join the top 10 in the tenth place.
“A further observation is that despite being a very attractive opportunity from a valuation standpoint, no UK focused solutions have made the top 10. The question is, as the year progresses, 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, 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.
* 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.