Vanguard dominates most recommended investment solutions

Thursday, 09 January 2025 09:37

Defaqto's website

Vanguard products dominated the top 10 most recommended multi-asset and single asset investment solutions in 2024, according to new data from Defaqto.

The US investment manager took the top two spots in the most recommended single asset investment solutions, as well as two of the top five multi-asset propositions.

The data from Defaqto was drawn from its Financial Planning software, Defaqto Engage. The data and fintech company claims its software is used by over 30% of advisers in the UK. Recommendations covering £50bn of investments per year go through the software.

For single asset investment solutions, the most recommended proposition was the Vanguard LifeStrategy 100% Equity fund, followed by a new entrant within the top 10, the Vanguard US Equity Index fund.

In 2024 advisers had a preference for passives and index trackers, which Defaqto said could be due to lower costs and considerations around Consumer Duty. While Terry Smith's Fundsmith fell to fourth place, it remained the only true active fund within the top seven, indicating that advisers have not completely shunned active management.

Rank	Proposition Name	Movement up/down	% Share of Top 10
1	Vanguard LifeStrategy 100% Equity	+2	15.14
2	Vanguard US Equity Index	+13	13.76
3	HSBC American Index	-1	12.78
4	Fundsmith Equity	-3	12.36
5	L&G Global 100 Index	+16	11.43
6	L&G Global Technology Index	+44	8.90
7	Fidelity Index World	-2	7.53
8	Royal London Corporate Bond	-2	6.48
9	Royal London Global Equity Dividend	+123	5.90
10	Royal London Short Term Money Market	+6	5.71

Source: Defaqto, 9 January 2025

There was less change in the top 10 most recommended multi-asset investment solutions in 2024.

There were two new entrants, the Artemis Monthly Distribution fund in fifth place and the VT AJ Bell Balanced fund in ninth. The top four propositions accounted for close to two thirds of the overall value of recommendations.

Rank	Proposition Name	Movement up/down	% Share of Top 10
1	HSBC Global Strategy Balanced	+3	16.77
2	Vanguard LifeStrategy 80% Equity	-	16.00
3	HSBC Global Strategy Dynamic	+6	15.18
4	Vanguard LifeStrategy 60% Equity	-3	14.79
5	Artemis Monthly Distribution	+13	8.48
6	BNY Mellon Multi-Asset Balanced	-3	8.14
7	Royal London Sustainable Diversified	+1	5.51
8	BNY Mellon Multi Asset Growth	+2	5.25
9	VT AJ Bell Balanced	+8	5.14
10	Royal London Sustainable World Trust	-3	4.73

Source: Defaqto, 9 January 2025

There was considerable change to the top 10 most recommended MPS investments in 2024, with only four solutions retaining their places compared to 2023.

The most notable new entrants came from Quilter WealthSelect, with four of their solutions represented. There was also no ‘out and out’ passive solution within the top 10, whereas in 2023 there were three solutions featured.

Rank	Proposition Name	Movement up/down	% Share of Top 10
1	Tatton Core Active	+5	17.26
2	Tatton Core Balanced	+1	13.68
3	Quilter WealthSelect Managed Blend 7	+24	10.94
4	Quilter WealthSelect Managed Blend 6	+12	10.76
5	Quilter WealthSelect Managed Blend 5	+6	9.04
6	Waverton Growth Portfolio	-1	8.40
7	Rockhold 50% Active 50% Passive Balanced Growth	+216	7.78
8	Tatton Core Agressive	+26	7.62
9	Brewin Dolphin MPS Balanced	-5	7.46
10	Quilter WealthSelect Managed Active 6	+71	7.05

Source: Defaqto, 9 January 2025

Andy Parsons, insight manager (funds and DFM) at Defaqto, said: “The Rockhold 50% Active 50% Passive Balanced Growth was the most notable riser in terms of places gained, climbing 216 spots to seventh place.

“It is clear from the changes within the Top 10 that for advisers, 2024 brought a variety of external geo-political and central bank challenges that had to be carefully considered when deciding upon solutions for their respective clients. As we move into 2025, attention and focus will immediately be drawn to the upcoming inauguration of the new US President and what rhetoric and global challenges he will pose in terms of trade tariffs.”