Single asset funds have jumped in popularity over the past year, the latest data from Defaqto shows.
Between 1st April 2022 and 31st March 2023, single asset fund recommendations accounted for nearly 35% of all fund recommendations.
The total value of recommendations made through Defaqto’s Engage software equated to £12.6 billion, a 47% increase over the last three years and up from £8.6 billion for the year ending 31st March 2020.
Defaqto’s data showed that advisers’ top search criteria for single asset funds last year were performance returns, followed by diamond ratings, which was a more popular factor than costs or ratios when researching single asset funds.
To meet growing demand, Defaqto has appointed single asset fund expert Rion Barker to help fund and asset managers promote and distribute single asset funds. Barker joins from Fintel Group sister company SimplyBiz where he spent more than 6 years. He will be responsible for helping asset managers raise visibility of their funds among advisers through diamond ratings, risk ratings, fund reviews, ESG reviews, analytics and events.
Glenn Porter, chief commercial officer at Defaqto, said: “As our data shows, the trend towards single asset funds is compelling. They have become an important focus for us because of the huge increase in recommendations we’ve seen. We are uniquely positioned in the market to raise the profile of funds that both assist asset managers in distribution and support advisers in making smarter financial decisions for their clients. Rion’s appointment continues our commitment to enhancing the advice journey for advisers and their clients.”
Rion Barker added: “Having followed the expansion of the single-strategy universe, I’m very excited about the growth in this area and joining Defaqto’s team of experts. The industry in general tends to focus on multi-asset; however, as our data shows, the single asset market is very much alive and well.”
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