Top recommended onshore and international bonds in H1 revealed as demand surges

Advisers are showing renewed interest in onshore bonds and international bonds, according to Defaqto, which has published a list of the top recommended products in each category in the first half of 2026.

The findings are from Defaqto’s whole-of-market data available in Defaqto Engage, which is used by over 30 per cent of advisers.

The data provides a representative cross-section of the UK financial adviser market, excluding recommendations made by vertically integrated distribution networks.

It includes over 20 onshore bonds across 15 providers and more than 50 international bonds from 10 providers.

Prudential Investment Plan remained dominant in the top recommended onshore bond list with 58 per cent of recommendations, down slightly from the 60 per cent recorded in 2025.

Quilter Collective Investment Bond retained its second place on the list with 21 per cent of recommendations, followed by Aviva Onshore Bond (10 per cent), Transact Onshore Bond (3 per cent) and LV= Smooth Managed Funds Bond (3 per cent).

“Despite a slight loss of top 10 recommendation share to Quilter, Prudential continues to be dominant in the onshore bond space, with Aviva rounding off the top three,” said Defaqto insight manager for wealth and protection, Andrew Duthie.

“Below that, the climbers are due to Aviva closing their Select Investment Growth and Income Option during 2025.

“Chesnara Life have two places in the top 10, the former HSBC Life business, though the entry in the top 10 is the M&G Wealth version of their Investment Bond.”

Prudential also retained its position as the top recommended international bond, with its International Portfolio Bond receiving 24 per cent of recommendations, up by 1 percentage point.

Transact Offshore Bond climbed three places to second with 15 per cent of recommendations, up by 5 percentage points, with Pru International Investment Bond WoL (13 per cent), Aberdeen International Portfolio Bond for Wrap (11 per cent), and Pru International Investment Bond – CR (10 per cent) making up the rest of the top five.

“Prudential International Portfolio Bond maintains a strong position in recommendations but a strong showing in the first half year of 2026 has meant that Transact have jumped to second, pushing Prudential International’s Investment Bonds and Aberdeen International’s Portfolio Bond for Wrap down a place,” said Duthie.

“Canada Life International, always a strong presence in the top 10 sees a switch in position of recommendations for the Premier Account Alpha and Wealth Preservation Account with Premiere Europe also entering.

“Utmost International Evolution is another new entrant, with the number of recommendations after the top five increasingly close.

“With bonds expected to be one of the products that benefits from changes to IHT in pensions coming in from April 2027, it will be interesting to see if these numbers change as we move into the second half of 2026 as advisers show a renewed interest in both onshore and international bonds.”

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