Seven new funds added to Bestinvest’s Best Funds List

Source: Trustnet

Seven new funds have been added to the Bestinvest Best Funds List since September, while six portfolios have been given the boot.

The firm released its updated list ahead of the end of the financial year in April, expecting many people to prioritise filling their tax-free ISA and pension allowances before the deadline.

Jason Hollands, managing director at Bestinvest, said: “Tax efficiency has rarely mattered more when you consider the record UK tax burden and raft of changes to how pensions, savings and investments are taxed in recent years.

“While the deadline is fast approaching, there is no need to panic. Choosing investments in a rush can feel overwhelming, especially if you are trying to make decisions aligned with long-term financial goals in a hurry and against a backdrop of market volatility amid the current conflict in the Middle East.”

Making the most of the allowance is the priority, he said, with fund selection the next port of call. For the latter, the Best Funds List offers “inspiration”, with 144 options recommended by the firm’s analysts.

In the first update of 2026, Bestinvest revealed seven new names, three of which are passive options: Fidelity Index Japan, iShares S&P 500 Swap ETF and UBS Core MSCI World ETF.

Hollands said: “Including passive options alongside funds, listed investment companies and trusts ensures the list stands apart from some other platform ‘best buy’ lists, which typically focus on open-ended funds. 

US asset management giant Fidelity was the only firm with two new additions in the latest release, with Fidelity Global Technology also making the list. The active fund “stands out” for its “contrarian approach to technology investing”.

Managed by Hyun Ho Sohn, it holds around 100 stocks spread across the US, Asia, and Europe. The portfolio has often been underweight the US and large companies compared to its index, omitting major index stocks such as Nvidia at times, Hollands said.

“Unlike many of its peers, the fund isn’t confined to the technology sector alone. It also invests in companies from other industries that are heavily reliant on technology, providing an additional layer of diversification and flexibility in sourcing returns”, he added, making it a “good defensive technology choice”.

Performance of funds vs sector and benchmark over 5yrs

Source: FE Analytics

The fund has doubled investors’ money over the past five years, staying around 30 percentage points behind the MSCI ACWI/Information Technology and Communication Services index, although ahead of the average peer.

It has done this with the second-lowest volatility in the peer group (14.7%) and the shallowest maximum drawdown (14.3%).

Closer to home, JPM UK Equity Plus has also been added. Run by James Illsley, Callum Abbott and Anthony Lynch, the portfolio is a long-short UK equity fund that looks to deliver strong returns by remaining market neutral, with a long book typically around 130% of assets and a short book of 30%.

It focuses on large UK companies with a blend of styles, currently tilted toward financials, industrials and consumer defensive sectors.

Outside of equities, Vontobel Global Corporate Bond was the only fixed-income addition, while on the alternatives side PGIM Global Select Real Estate Securities also garnered the analysts’ backing.

On the other hand, six funds have been removed recently, including Fundsmith Equity and Fundsmith Stewardship. Run by FE fundinfo Alpha Manager Terry Smith, the former fund was placed ‘on pause’ in 2024 after it appeared in the firm’s ‘Spot the Dog’ report but was officially removed from the buy list recently.

Both funds sit in the bottom quartile of the IA Global sector over the past one, three and five years, making just 27% and 20.4% respectively over half a decade, as the below chart shows.

Performance of funds vs sector and MSCI World over 5yrs

Source: FE Analytics

Two income funds also made way. Montanaro UK Income and Trojan Ethical Income were both removed by the analysts.

On the former, Hollands said its track record since launch in 2006 has been strong but noted that recent performance has faced “style headwinds”, notably its quality growth bias and exposure to small and mid-caps, as well as its avoidance of oil and gas companies through ethical exclusions.

“Recent performance aside, this remains a decent fund which has stuck by its process, but we feel there are higher conviction options elsewhere,” he said.

Meanwhile, the Trojan fund came off the list late last year, having lagged UK income peers with similar exclusion thresholds and experienced a change of manager the prior year.

“Other considerations were a high OCF [ongoing charges figure] compared to other funds and a shrinkage in its size following high outflows.”

Stewart Investors Global Emerging Markets All Cap and Premier Miton Pan European Property Share were also removed.

“It is important to stress that removal from the list does not necessarily mean a fund should be sold,” he concluded.