Defaqto has identified advisers’ top 10 most recommended multi-asset strategies, managed portfolio solutions (MPSs) and funds of 2023.
The financial product data and market intelligence provider pulled data from its Engage adviser research software to ascertain which products made the grade last year.
The firm said the software is used by approximately 30% of UK-based advisers in their decision making process when serving clients, which means it offers a representative sample of the market as a whole.
The rankings were calculated based on the volume of total recommendations in monetary terms. Defaqto’s data set contains details of more than 18,000 funds and 2,700 DFM MPS portfolios, platforms and products. Defaqto Engage annual recommendations totalled £42bn of volume.
In multi-asset strategies, Vanguard was very well represented, with Vanguard Lifestrategy 60% Equity on top with 24.27% of volume and Vanguard LifeStrategy 80% Equity in second place. BNY Mellon Multi-Asset Balanced was third.
The full top 10:
| Position | Proposition Name | % Share of Top 10 |
| 1 | Vanguard LifeStrategy 60% Equity | 24.27 |
| 2 | Vanguard LifeStrategy 80% Equity | 19.20 |
| 3 | BNY Mellon Multi-Asset Balanced | 12.29 |
| 4 | HSBC Global Strategy Balanced | 8.61 |
| 5 | Vanguard LifeStrategy 40% Equity | 7.40 |
| 6 | Vanguard Sustainable 60-70% Equity | 6.15 |
| 7 | Royal London Sustainable World Trust | 5.94 |
| 8 | Royal London Sustainable Diversified Trust | 5.60 |
| 9 | HSBC Global Strategy Dynamic Portfolio | 5.30 |
| 10 | BNY Mellon Multi-Asset Growth | 5.26 |
In the MPS category, Timeline Portfolios’ Classic – 50 was the most recommended with 18.11% of the total volume, followed by Brewin Dolphin’s MPS Growth solution and the Tatton Core Balanced solution.
The full top 10:
| Position | Proposition Name | % Share of Top 10 |
| 1 | Timeline Classic – 50 | 18.11 |
| 2 | Brewin Dolphin MPS Growth | 10.43 |
| 3 | Tatton Core Balanced | 10.42 |
| 4 | Brewin Dolphin MPS Balanced | 10.29 |
| 5 | Waverton Growth Portfolio | 9.06 |
| 6 | Tatton Core Active | 8.86 |
| 7 | AJ Bell Passive MPS 3 | 8.84 |
| 8 | Tatton Tracker Balanced | 8.49 |
| 9 | Brooks Macdonald Medium Risk (Active) (Income & Growth) | 8.05 |
| 10 | Waverton Balanced Portfolio | 7.46 |
Turning to funds, or ‘single asset investment solutions’ as Defaqto calls them, Terry Smith’s eponymous Fundsmith Equity topped the table with 20.69% of all recommendations by volume, followed by HSBC American Index and Vanguard LifeStrategy 100% Equity.
The full top 10:
| 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 |
Andy Parsons, insight manager at Defaqto, commented: “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.”
“As the table clearly shows, there are a variety of investment solutions being chosen across a multitude of varying styles and risk levels,” Parsons continued. “Providers, such as RBC Brewin Dolphin, Tatton and Waverton are represented more than once with Tatton having the most with three propositions.
“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.”
This article was originally written for our sister publication, International Adviser
