Revealed: the 20 most popular fund picks for DB transfers

Data from pension software company Selectapension has revealed the most recommended investment funds for pension transfers since the pension freedoms began in April 2015

Defined benefit (DB) pension transfers have been on the rise since pension freedoms were introduced in 2015. 

Last year a freedom of information request submitted by the Financial Times revealed that value of DB transfers rose from £7.9 billion in 2016 to £20.8 billion in 2017. 

Where has all this money been going? While providers have recorded a rise in inflows over the same period very few have revealed exactly how much has come from DB transfers, let alone which funds the money has gone into. 

Using data from pension software provider Selectapension, New Model Adviser® can now reveal the 20 most popular funds recommended to clients in transfer value analysis (TVAS) reports since April 2015. 

It is important to note not every TVAS report leads to a recommendation to transfer out of a DB pension. But we can give a picture of the funds that are most popular with advisers who are active in the DB transfer market.

We have added our own research to the data to show the funds' performance from April 2015 to 31 January 2019 plotted against their benchmarks.

Click on to read more. 

Defined benefit (DB) pension transfers have been on the rise since pension freedoms were introduced in 2015. 

Last year a freedom of information request submitted by the Financial Times revealed that value of DB transfers rose from £7.9 billion in 2016 to £20.8 billion in 2017. 

Where has all this money been going? While providers have recorded a rise in inflows over the same period very few have revealed exactly how much has come from DB transfers, let alone which funds the money has gone into. 

Using data from pension software provider Selectapension, New Model Adviser® can now reveal the 20 most popular funds recommended to clients in transfer value analysis (TVAS) reports since April 2015. 

It is important to note not every TVAS report leads to a recommendation to transfer out of a DB pension. But we can give a picture of the funds that are most popular with advisers who are active in the DB transfer market.

We have added our own research to the data to show the funds' performance from April 2015 to 31 January 2019 plotted against their benchmarks.

Click on to read more. 

20

Fund: Royal London UK Equity Income 

Manager: Martin Cholwill 

Number of recommendations since 2015: 1,760

Performance since 30 April 2015: +18.77

 

 

19

Fund: PruFund Growth D

Manager: Prudential Portfolio Management Group

Number of recommendations since 2015: 1,763

Performance since 31 July 2017: +20.92%

 

 

18

Fund: Jupiter Absolute Return

Manager: James Clunie 

Number of recommendations since 2015: 1,768

Performance since 30 April 2015: 8.6%

 

17

Fund: Schroder US Mid Cap 

Managers: Jenny Jones and Robert Kaynor

Number of recommendations since 2015: 1,823

Performance since 30 April 2015: +50.03%

 

16

Fund: Merian UK Mid Cap 

Manager: Richard Watts

Number of recommendations since 2015: 1,873

Performance since 30 April 2015: 35.19%

 

15

Fund: Vanguard LifeStrategy 40% Equity

Manager: Vanguard Investments UK

Number of recommendations since 2015: 1,960

Performance since 30 April 2015: +19.81%

 

14

Fund: Jupiter Strategic Bond 

Manager: Ariel Bezalel

Number of recommendations since 2015: 2,071

Performance since 30 April 2015: +12.78%

 

13

Fund: Schroder Tokyo 

Manager: Andrew Rose*

Number of recommendations since 2015: 2,251

Performance since 30 April 2015: -3.88%

*Rose will retire in July 2019

 

12

Fund: Lindsell Train UK Equity Acc

Manager: Nick Train

Number of recommendations since 2015: 2,305

Performance since 30 April 2015: 39.92%

Watch our interview with Train from last year here. 
 

 

 

11

Fund: Fidelity Emerging Markets

Manager: Nick Price

Number of recommendations since 2015: 2,550

Performance since 30 April 2015: +27.33%

 

10

Fund: Merian North American Equity

Manager: Ian Heslop

Number of recommendations since 2015: 2,559

Performance since 30 April 2015: +62.95%

 

9

Fund: Woodford Equity Income 

Manager: Neil Woodford

Number of recommendations since 2015: 2,640

Performance since 30 April 2015: -3.97%

 

8

Fund: L&G UK Property Feeder

Managers: Michael Barrie and Matt Jarvis 

Number of recommendations since 2015: 2,795

Performance since 30 April 2015: +25.05%

 

7

Fund: Stewart Investors Asia Pacific

Manager: David Gait 

Number of recommendations since 2015: 2,929

Performance since 30 April 2015: +29.58%

 

 

6

Fund: Vanguard LifeStrategy 60% Equity 

Manager: Vanguard Investments UK

Number of recommendations since 2015: 3,031

Performance since 30 April 2015: +25.61%

 

5

Fund: Jupiter European Income

Manager: Alexander Darwall

Number of recommendations since 2015: 3,190

Performance since 30 April 2015: +48.91%

 

 

4

Fund: Fundsmith Equity 

Manager: Terry Smith

Number of recommendations since 2015: 3,219

Performance since 30 April 2015: 84.65%

 

3

Fund: Vanguard US Equity Index 

Manager: Vanguard Investments UK

Number of recommendations since 2015: 3,624

Performance since 30 April 2015: 59.14%

 

 

2

Fund: PruFund Cautious 

Manager: Prudential Portfolio Management Group

Number of recommendations since 2015: 3,892

Performance since 30 April 2015: +19.75%

 

1

Fund: PruFund Growth 

Manager: Prudential Portfolio Management Group

Number of recommendations since 2015: 7,905

Performance since 30 April 2015: +33.97

 

Share this story

More Content

ADVICE

3 Comments Breakfast Club: From offshore oil worker to running an advice firm

Breakfast Club: From offshore oil worker to running an advice firm

Jennifer Ellis runs Wellington Wealth alongside sister Nicola Ellis, emphasising the importance of family and client service

twitter_banner

INVESTMENT