- AJ Bell added three funds and removed two funds from its Favourite Funds list in Q3 2026
- The Ashoka WhiteOak India Opportunities fund was added to the list as the fund is well-diversified and gives investors access to one of the world’s fastest growing economies
- The Schroder Strategic Bond fund and Artemis SmartGARP Global Smaller Companies fund were also added to the list
- To accommodate these latter additions, the Waverton Sterling Bond fund and abrdn Global Smaller Companies fund were removed from the list
- AJ Bell has also updated its Investment Trust Select list with two changes
- The Aberdeen UK Smaller Companies Growth Trust has been removed from the list following the announcement of its proposed merger with the JPMorgan UK Small Cap Growth & Income Trust, while the JPMorgan Global Growth & Income Trust has been added to the list
Paul Angell, head of investment research at AJ Bell, comments:
“Our Favourite Funds and Investment Trust Select lists are under constant review to ensure we have the highest conviction in the funds we’ve selected, and to identify new names with better potential to achieve their objectives.
“As part of this process, we assess each fund’s investment strategy, the fund managers, and their teams. We update the list to ensure it continually consists of funds which we believe have a strong chance of achieving their investment objectives.
“Between July and September 2026, we made the decision to add three funds to the list, and removed two funds from the list.
"We also made two changes to our Investment Trust Select List in the quarter. We removed the Aberdeen UK Smaller Companies Growth Trust, following the announcement of its proposed merger with the JPMorgan UK Small Cap Growth & Income Trust. We also added the JPMorgan Global Growth & Income Trust."
Favourite Funds list updates:
- Added: Ashoka WhiteOak India Opportunities
"In the last quarter we added the Ashoka WhiteOak India Opportunities fund to our Favourite Funds list.
"The fund is led by Hiren Dasani, who joined the firm in 2025 from Goldman Sachs, where he had been managing Indian equities since 2017. Hiren is supported by the firm’s founder, Prashant Khemka, who is the architect of the investment approach and they are supported by a large team of research analysts with a broad range of experience.
"The team focuses on finding companies with strong management teams, solid profitability, and business models that can scale and grow over time, without taking excessive risk relative to the MSCI India IMI Index. The end result is a well-diversified fund, typically holding between 125 and 175 companies underpinned by an investment approach which leans towards quality, growth-orientated businesses."
- Added: Schroder Strategic Bond
"The Schroder Strategic Bond fund also joined the Favourite Funds list in the last quarter. This flexible bond strategy invests across a wide range of bond markets around the world, including government bonds, corporate bonds, high yield bonds, emerging market debt and asset-backed bonds.
"The fund is led by Julien Houdain and Martin Coucke and supported by Schroders' wider fixed income business. At the heart of the strategy is an adaptable approach that combines economic analysis with detailed bond research. This approach allows the managers to adjust the portfolio as conditions change while remaining focused on bond valuations and portfolio risk.
"We believe Schroders’ depth of capabilities, alongside the fund’s intelligent design and the calibre of the fund’s portfolio managers make this an attractive investment option for investors looking for a diversified bond exposure within a single fund.”
- Added: Artemis SmartGARP Global Smaller Companies
"We’ve also added the Artemis SmartGARP Global Smaller Companies fund to our Favourite Funds list. The fund is the most recent addition to Artemis’ SmartGARP franchise and invests in smaller companies around the world, across both developed and emerging markets.
"We like the consistency and repeatability of the team’s investment approach, which is built around a Growth at a Reasonable Price discipline. In practice, this means looking for companies with attractive growth prospects, but only where the valuation remains sensible. The team use data to search for businesses whose share prices appear out of step with their underlying earnings, cash flow and financial strength.
"We believe the team’s data-driven investment approach is particularly appealing when investing in global smaller companies, where the opportunity set is large and diverse."
- Removed: Waverton Sterling Bond
"To make room for the Schroder Strategic Bond fund, we’ve removed the Waverton Sterling Bond fund from the list. Our conviction in the fund has weakened following the retirement of long-standing lead manager Jeff Keen.
"In addition to this, the fund’s primary focus on higher quality bonds (minimum 80% investment grade) hinders its return potential in comparison to the more flexible approach of the Schroder Strategic Bond fund."
- Removed: abrdn Global Smaller Companies
"To make way for Artemis SmartGARP Global Smaller Companies, we have removed the abrdn Global Smaller Companies fund from the list.
“The abrdn fund has failed to keep pace with both peers and its benchmark over recent years. While its quality growth investment style has at times been out of favour, stock selection has also proved disappointing, particularly in the US portion of the portfolio. The team has made changes to address this, including making greater use of Aberdeen’s US smaller companies team, but we’re not yet convinced these changes will be enough to restore the fortunes of the fund.
“With Artemis SmartGARP Global Smaller Companies now available, we believe investors are better served by a fund with a more repeatable, consistent and clearly defined investment process.”
Investment Trust Select list updates:
- Added: JPMorgan Global Growth & Income Trust
"In the last quarter we added the JPMorgan Global Growth & Income Trust to our Investment Trust Select list. The trust offers investors access to a global equity strategy managed by JPMorgan’s Global Core team, led by Helge Skibeli. He has the support of James Cook and Sam Witherow as well as JPMorgan’s extensive global analyst platform, which covers thousands of companies across sectors and regions. JPMorgan has announced that Helge will retire in February 2028, and with James and Sam continuing to manage the trust, we believe the strategy is in capable hands following the transition.
"At its core, the trust is focused on identifying quality companies with an attractive long-term return potential. The team look for businesses with strong profitability, durable competitive advantages and sustainable earnings, while also maintaining valuation discipline. The portfolio typically holds between 50 and 70 stocks.
"The trust has grown materially in recent years through a series of mergers, helping to improve scale, liquidity and cost efficiency. The ongoing charge of 0.39% is highly competitive, and the board has shown a willingness to ensure the trust’s share price trades close to its NAV."
- Removed: Aberdeen UK Smaller Companies Growth Trust
"The Aberdeen UK Smaller Companies Growth Trust is expected to combine with the JPMorgan UK Small Cap Growth & Income Trust towards the end of 2026, subject to shareholder approval. If the transaction goes ahead, shareholders in the Aberdeen trust will receive shares in the enlarged JP Morgan trust, unless they choose a cash exit option, which is subject to the limits set out in the transaction terms.
"Though the two trusts have some overlap, the JPMorgan trust has an unusual dividend policy – it targets a 4% annual yield, paid from a combination of income and capital returns. This can appeal to investors looking for income, but it makes the trust a less straightforward selection for many UK Smaller Companies investors who are looking for long-term capital growth in their investment.
"We aren’t adding a replacement trust at this stage. That’s because we don’t believe there is a stand-out alternative, and customer demand for a dedicated UK smaller companies option is limited. That said, we’ll continue to monitor the sector and may add an alternative trust in future if we identify a good fit."
AJ Bell Favourite Funds and Investment Trust Select list explained:
The AJ Bell Favourite Funds and Investment Trust Select list are lists of funds and investment trusts that have been extensively researched and selected by our in-house investments team, designed to help investors with their own investment research. The lists are chosen by our investment specialists, regularly updated, and feature only funds and trusts that we believe offer a combination of a clear and robust investment philosophy and process, a proven management track record and value for investors.