Bestinvest has named the funds on its annual buy list, including eleven new entrants to the list.
The platform, which is part of Tilney Smith & Williamson, has published ‘The Best Funds’ list, which lists 119 investments, including Oeics, exchange-traded funds, and investment trusts.
There are eleven new funds on the list, including Artermis’s Corporate Bond Fund and UK Select Fund.
IShares has three funds newly appearing on the list, the Core MSCI Japan IMI ETF, the FTSE 250 ETF and the iShares UK Property ETF.
Vanguard’s FTSE All-World Ucits ETF and Jupiter’s UK Specialist Equity Fund have also taken up a place on the list since February.
At the same time a number of funds that appeared on the last list haven’t been selected this time around. These include Civitas Social Housing, Trojan Income Fund, HSBC’s FTSE 250 Index and the Liontrust Special Situations fund.
Sector | Top Funds | |||
UK Equities - Growth | Jupiter UK Special Situations | Liontrust UK Growth | ||
UK Equities - Income | Threadneedle UK Equity Income | TB Evenlode Income | ||
Target Absolute Return and Multi-Asset | Ninety One Diversified Income | JPM Global Macro Opportunities | Trojan Fund | |
Fixed Income | TwentyFour Absolute Return Credit | Janus Henderson Strategic Bond | ||
Europe | TM CRUX European Special Situations | BlackRock Continental European Income | BlackRock European Dynamic | |
Japan | LF Morant Wright Nippon Yield | Baillie Gifford Japanese | ||
Global Emerging Markets and Asia Pacific | Schroder ISF Asian Total Return | Stewart Investors Asia Pacific Sustainability | Aubrey Global Emerging Markets Opportunities | FSSA Asia Focus |
North America | Findlay Park American | Dodge & Cox Worldwide US Stock | Loomis Sayles US Equity Leaders | |
Global | Loomis Sayles Global Growth Equity | Fundsmith Equity | Fidelity Global Dividend | |
Ethical and Sustainable | Brown Advisory US Sustainable Growth | BMO Responsible Global Equity | Liontrust UK Ethical | |
Real Assets | Lazard Global Listed Infrastructure Equity | International Public Partnerships |
Funds are selected on the basis of ten “commandments”, that include managers who are not “constrained by hugging benchmarks”, have a clearly defined approach, personally invest in their own funds and who are willing to limit the size of their funds if this starts to hamper the way it is managed.
Jason Hollands, managing director at Bestinvest, said the extensive choice of options available can be “bewildering”, warning it was easy to fall into the trap of investing in whatever funds are being “heavily marketed” or by relying on the fund’s past performance.
“The trouble with this approach is that a fund’s past performance may have been achieved under a different manager from the one at the helm today, or succeeded under a very different set of circumstances, which may be less relevant in the years ahead,” he said.
“We have produced The Best Funds List to help self-directed investors navigate this maze.
“The list shares the top fund ideas that our investment management colleagues have identified in each sector, based on their research, including meeting the fund managers, digging beneath the bonnet to understand their investment approaches and giving important consideration to factors like fund size and liquidity.”
The list is broken down into 12 sectors within which the firm's 300-strong investment team have selected their top two to three funds, as well as a number of fund tables.
Around 89 actively-managed funds and investment companies appear on the list, out of a total of around 4,000 funds on sale in the UK, as well as over 300 investment companies.
sally.hickey@ft.com
