Liontrust European Dynamic, M&G Japan and BlackRock Gold & General are among seven new entrants to Bestinvest’s Best Funds List since March 2024. Other new entrants include JPM UK Equity Core, Alliance Trust, SPDR MSCI ACWI ETF and Xtrackers S&P 500 Equal Weight ETF.
The report, which is published twice per year but is actively rebalanced on an ongoing basis, has unveiled 103 ‘best in breed’ actively-managed funds and investment companies, as well as 34 passive funds.
In terms of methodology, Bestinvest examines funds on a sector-by-sector basis, using its ’10 commandments’ framework. This includes, but is not limited to, picking fund managers which have clear objectives, show concerns in the right places regarding business fundamentals, limit their fund size, and operate over a long-term time horizon. Bestinvest also favours managers who are willing to limit their fund size when necessary, and who don’t hug the benchmark if they purport to be active managers.
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In terms of UK equity growth funds, Liontrust UK Growth, Artemis UK Select and the Mercantile investment trust received honorable mentions in the report, while BlackRock UK Income and Montanaro Income were mentioned on the income side.
Fidelity Index World, Brown Advisory Global Leaders and JP Morgan Global Growth & Income investment trust were highlighted in the global space while, in terms of global emerging markets and Asia Pacific, Templeton Emerging Markets investment trust and Pacific Assets Trust were featured as good options.
Within fixed income, Artemis Corporate Bond and Invesco Tactical Bond were highlighted while, within multi-asset and targeted absolute return, Lazard Rathmore Alternative and TM Fulcrum Diversified Absolute Return were top picks.
Regional top fund picks include Fidelity European Trust, JPM Japan and Premier Miton US Opportunities.
Jason Hollands, managing director of Bestinvest, said: “Each sector typically has a dedicated team of half a dozen investment managers researching and monitoring the investment options available. Our investment specialists not only meet the fund managers to understand their philosophy and approach, but also carefully assess the type of market environment that might benefit from a certain manager’s style.
“Our experts also scrutinise the risk management process, consider what might trigger a sale of holding, and evaluate whether there are any size or liquidity constraints around how scalable the strategy of the fund is.”
He added that, with 137 investment options on the latest Best Funds List across a wide range of sectors, investors “must still decide what works for their own portfolio, time horizon, goals and risk profile”.
“If anyone is rushing to load up their ISA and SIPP to beat any Budget tax changes, remember the 30 October deadline only applies to the contribution into the tax wrapper. The investor can then take their time to make their investment choices, so we hope this list offers valuable ideas and inspiration to help them make the right decision for their portfolio.”
