Examples of some of the most favoured underlying investments include Fidelity Index World, HSBC American Index, HSBC FTSE All Share, Vanguard US Equity Index, Vanguard Emerging Markets, L&G International Index, and a variety of iShares North American, iShares 100 UK Equity Index and iShares Core FTSE 100.
While the attention has focused on the strength and outperformance of the Top 10, Advisers and their clients need to be mindful that during the three-year cumulative period in question, to the end of April 2024, there were some poor performers.
Analysis shows that, of the 244 cohorts in Defaqto MPS Growth Comparator, there were 39 portfolios that did not manage to achieve a total return of even 1 per cent, and 27 portfolios recorded an overall loss during this period.
Past performance is no guarantee to the future, of course, and advisers need to undertake thorough due diligence for their clients.
At Defaqto, we firmly believe the launch of the DFM Comparators is a game changer, providing the open transparency that’s been missing from the MPS investment arena and bringing it more in line with that associated with more traditional multi-asset and single asset funds.
Andy Parsons is Insight Managers (Investments) at Defaqto.
