Skip to the content

The best-buy funds picked and dropped by Bestinvest

12 September 2022

Two Premier Miton funds and a host of investment trusts were included in recent months.

By Jonathan Jones,

Editor, Trustnet

Some 13 funds have been added to Bestinvest’s best-buy list since its last report in February, according to parent company Evelyn Partners, while six have made way.

The list, which highlights the firm’s fund recommendations, now has 127 portfolios, including investment trusts and exchange traded funds (ETFs).

However, Jason Hollands, managing director of corporate affairs at Evelyn, said that while choosing strong funds is important, it is also vital to have a well-structured investment approach.

“A common mistake made by DIY investors is to purchase a bunch of interesting or top-performing funds, often as ad hoc decisions each year, without first considering the right mix of asset classes and markets to suit their goals, risk appetite and time horizon,” he said.

He highlighted asset allocation and diversification, as well as constant review and setting goals, as being equally important to picking top funds.

For funds to be approved, Bestinvest looks for 10 key attributes, including clear objectives, limiting fund size and an understanding of environmental, social and governance (ESG) principles.

Managers must be invested in the funds they run, while their length of tenure is also a key factor for inclusion. Below is the table of funds that have made the list this time around.


Source: FE Analytics

In America, the team added Premier Miton US Opportunities to the recommendation list based on the fund’s broad asset allocation and strong focus on long-term growth.

Managed by Nick Ford and Hugh Grieves, who use a multi-cap approach to investing in the US, the fund provides investors with “meaningful” exposure to smaller companies and businesses that are “less sensitive” to economic conditions such as interest rate rises.

“As such, they avoid wild bets on companies that are convinced they are going to change the world,” Hollands said.

Turning East, Jupiter Japan Income was added to the best-buy list, with Hollands highlighting its “consistent outperformance” of its peers and the Topix benchmark index.

The fund is run by Dan Carter and Mitesh Patel, who invest in high-yielding, growing businesses that have strong competitive advantages.

“The managers believe that Japan is roughly 20 years behind the West in terms of the digitalisation of its economy, which creates opportunities to find growing small and mid-sized companies,” he added.

It bucked the trend at Jupiter, with both the UK Special Situations and UK Specialist Equity funds removed from the list.

Others to be dropped were EdenTree Responsible and Sustainable European Equity, Fidelity Strategic BondCT European Real Estate Securities and Syncona Limited.

A number of new trusts entered the list, as Hollands said it would be “foolish” to ignore investment companies. Temple Bar, which was taken over in 2020 by Redwheel’s Nick Purves and Ian Lance, is one that made the cut this time around.

The portfolio is run by a “highly experienced management team” and “could be a good option for investors looking for exposure to value investing in UK equities”, Hollands said.

Another worth noting is 3i Infrastructure. The asset class has proven popular among investors this year as higher interest rates and rising inflation has caused equity and bond markets to sell off, highlighting the need for alternative investments.

The fund is managed by Phil White and aims to provide a total return of 8%-10% per year with a rising dividend by buying a mix of assets that can provide capital growth and income yield.

“This is a best-in-class, mid-market infrastructure investment company with a very long-term track record,” Hollands said.

For a full run down of all of the funds added to the best-buy list, please see the table below.

Fund Sector Fund size  Fund managers (s) Yield OCF Launch date
3I Infrastructure  IT Infrastructure £3,035m 3.1% 1.16% 08/03/2007
Baillie Gifford Responsible Global Equity Income IA Global Equity Income £908m James Dow, Toby Ross, Ross Mathison 2.1% 0.54% 06/12/2018
Federated Hermes Asia ex-Japan Equity IA Asia Pacific Excluding Japan £2,335m Jonathan Pines, Sandy Pei 0.0% 0.84% 05/12/2012
Finsbury Growth & Income Trust   IT UK Equity Income £1,819m Nick Train 2.2% 0.62% 01/01/1926
Guinness Global Equity Income IA Global Equity Income £2,458m Matthew Page, Ian Mortimer 2.6% 0.80% 11/03/2015
Guinness Sustainable Energy IA Commodity/Natural Resources £875m Jonathan Waghorn, Will Riley 0.67% 16/02/2018
iShares $ Treasury Bond 7-10yr UCITS ETF IA USD Government Bond £5,604m BlackRock Asset Management Ireland Ltd   0.07% 08/12/2006
Jupiter Japan Income IT UK All Companies £1,453m Guy Anderson, Anthony Lynch 3.8% 0.45%
Lazard Rathmore Alternative IA Japan £918m Dan Carter, Mitesh Patel 2.4% 0.98% 17/09/2012
Premier Miton Corporate Bond Monthly Income  IA Targeted Absolute Return £1,653m Douglas Workman, Frank Bianco, Mark Panter, Sean Reynolds, Sri Nadesan   1.32% 11/03/2020
Premier Miton US Opportunities IA Sterling Corporate Bond £164m Simon Prior, Lloyd Harris 3.2% 0.35% 15/01/2001
Temple Bar Investment Trust IA North America £1,455m Nick Ford, Hugh Grieves 0.0% 0.85% 18/03/2013
The Mercantile Investment Trust IT UK Equity Income £698m Ian Lance, Nick Purves 3.9% 0.49% 24/06/1926

Editor's Picks


Videos from BNY Mellon Investment Management


Data provided by FE fundinfo. Care has been taken to ensure that the information is correct, but FE fundinfo neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.