Important information: The value of investments and the income from them, can go down as well as up, so you may get back less than you invest.
We have just completed our twice-yearly review of our Select 50 list of favourite funds, with a number of changes to report as the new investing year gets underway.
We review the list in both January and July each year to ensure our picks remain updated with the latest thinking of our expert fund analysts and to take account of changes to fund details, such as price. Below you can see a summary of the changes we’ve made.
To better understand the changes, bear in mind our process for drawing up the list. The first stage involves narrowing down the huge universe of thousands of funds down to just a small number - around 60 - in which our experts have the highest conviction.
Once that process is done, Fidelity Personal Investing uses its size and scale to win discounts on the price of those 60-or-so funds which are passed on to investors in full. These discounts, along with an assessment of a fund’s overall cost and other factors, are then reflected in a second selection process which narrows the 60 down to just 50.
Additions to the list
The Matthews Asia Pacific Tiger Fund is managed by Sharat Shroff, who has around two decades of experience in investing in Asian markets. Because the fund is more exposed to the Asian domestic consumers there is an overweight to small and mid-cap stocks.
The Colchester Global Bond Fund provides investors with a differentiated approach to accessing government bonds. Investors should see the fund as a long term holding to gain exposure to the highest yielding, high quality government bonds.
iShares UK Gilts All Stocks Index Fund is one of the few passively managed funds on the Select 50, which is mainly aimed at highlighting active funds. The fund provides low-fee access to UK Government fixed income securities, or gilts. The investment manager has a long and successful track record of sticking to his stated benchmark - a key measure of passive funds - going back to July 2005.
BlackRock Continental Europe seeks to invest in companies in Europe that generate sustainable and profitable growth with some form of competitive advantage. The portfolio holds between 30-60 stocks with a skew towards defensive businesses that can perform without too much influence from ups and downs in the economic cycle.
JOHCM UK Dynamic only invests in companies that pay a dividend or intend to pay one in the coming 12 months. The edge comes from a strong analytical approach and sound knowledge of companies supported by a robust screening and risk process.
Jupiter UK Special Situations is managed by Ben Whitmore, a very experienced portfolio manager who has developed his philosophy over many years. The investment process is focused on identifying lowly valued companies with resilient balance sheets. However, Ben will not simply buy into the 30 cheapest names that will pop-up on his screens. Instead, he seeks to diversify his stocks by keeping sector concentration low.
Removals from the list
Invesco European Equity Income was removed following a change of fund manager. Stephanie Butcher has now passed the reins to new manager Oliver Collin and our analysts - while impressed with the new team - want to see that they can reproduce the philosophy and results of the outgoing manager.
Jupiter European Special Situations was removed from the list after a period of underperformance. The fund will continue to be monitored by our experts.
Barings Global High Yield Bond and Fidelity Strategic Bond Fund were both removed from the Select 50 based on our customer benefit scoring - the second part of our selection process. The funds remain highly rated by our analysts and will continue to be assessed in future reviews of the list.
More on the Select 50
Important information: Investors should note that the views expressed may no longer be current and may have already been acted upon. Select 50 is not a personal recommendation to buy funds. Equally, if a fund you own is not on the Select 50, we're not recommending you sell it. You must ensure that any fund you choose to invest in is suitable for your own personal circumstances. Overseas investments will be affected by movements in currency exchange rates. Investments in emerging markets can be more volatile than other more developed markets. There is a risk that the issuers of bonds may not be able to repay the money they have borrowed or make interest payments. When interest rates rise, bonds may fall in value. Rising interest rates may cause the value of your investment to fall. You must ensure that any fund you choose to invest in is suitable for your own personal circumstances. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.
What you could do next
View our experts' favourite funds
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