Defaqto reveals top 10 recommended Single Asset investment solutions in Q1 2024  

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 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.  

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.

More information about Defaqto Engage can be found at www.defaqto.com/solutions/engage