Our Favourite funds

When choosing active funds, we look at many factors including:

• The fund manager, their team and the wider organisation
• The investment philosophy underpinning the investment process
• The fund’s objective and suitability to meet the fund’s strategy
• The way the fund portfolio is constructed and whether it’s suitably diversified
• The performance of the fund and its ability to meet its objectives
• The cost of the fund and the value added by the fund manager 

When choosing the tracker funds, we research the following:

• The fund manager and their ability to successfully track the chosen index
• The investment approach to index replication – we've only selected funds which physically replicate the index they track
• The cost of the fund or ETF
• The size of the fund and whether it's large enough to ensure liquidity
• How the fund compares with its peer groups. Learn how we choose peer groups.

Our Favourite funds list includes both active funds (where a fund manager is paid to choose investments that outperform a benchmark) and tracker funds (which simply track an index or benchmark).  

We choose funds for their performance potential only, and don't receive any payments or commission from managers for choosing their funds.

We regularly review and update our list, so after you buy a fund, it's up to you to manage your portfolio.

If you’re invested in a fund that is no longer on the list, this doesn’t mean we recommend you sell it. If you'd like to align your portfolio with our latest adjustments, make sure you see the most recent updates below.

If you're not confident in managing your own portfolio, you might prefer our AJ Bell funds instead. They let you leave the day-to-day investing decisions to our expert team. 

We regularly review our Favourite funds list to keep it up to date. This means adding and removing funds when we need to. Please keep in mind this list of changes is informational only, and not a personal recommendation to buy or sell these funds.

August 2025

• Stewart Investors Asia Pacific Leaders – removed due to departure of portfolio managers.
• Stewart Investors Worldwide All Cap – removed due to portfolio manager departure.

April 2025

• Rathbone Ethical Bond Inc – added because of its experienced management team, who have delivered attractive risk-adjusted returns within the sector over many years.
• CT Responsible Sterling Corporate Bond Inc – removed to make room for a more actively managed alternative fund that we have greater confidence in.

March 2025

• Schroder Asian Alpha Plus Acc – added because of its strong team of research analysts and fund managers, who’ve delivered good returns within Asian equity markets over many years.
• Fidelity Asia Acc – removed to accommodate a fund we have greater confidence in.
• Schroder European Acc – removed due to reduced conviction in the fund’s manager and investment approach.

January 2025

• Royal London Corporate Bond – removed because of the challenges of managing such a large quantity of assets within the sterling corporate bond market.

October 2024

• WS Gresham House UK Smaller Companies Acc – added to offer investors access to a UK smaller companies fund with a differentiated investment approach benefitting from the firm’s wider experience in private markets.
• FTF Martin Currie UK Smaller Companies Acc – removed as part of a consolidation of UK smaller companies funds into higher conviction alternatives.
• WS Amati UK Listed Smaller Coms Acc – removed to accommodate a higher conviction option.
• Montanaro UK Income Inc – removed as part of a consolidation of UK equity funds into higher conviction alternatives.

September 2024

• HSBC FTSE All-World Index Tracker Fund C Inc – Added a distributing share class, to accompany the accumulation version of this existing Favourite Fund.
• HSBC Global Government Bond ETF XCHGBP – New addition to the list, giving investors access to a low cost and globally diversified, government bond exposure.
• HSBC Global Aggregate Bond ETF XCHGBP – New addition to the list, giving investors access to a low cost and globally diversified, investment grade government and corporate bond exposure.
• Vanguard Global Corporate Bond Index Fund £ Hedged Acc – New addition to the list, giving investors low cost exposure to globally diversified, corporate bonds.
• Vanguard Global Corporate Bond Index Fund £ Hedged Inc – New addition to the list, giving investors low cost exposure to globally diversified, corporate bonds.

August 2024

• M&G Japan Acc – Added as a balanced option investing in Japanese equity markets.
• Fidelity Special Situations Acc – Added to offer variety to our UK equity selections.
• Janus Henderson UK Responsible Income Inc – Added to offer an ethical option in the UK equity income sector.
• Waverton Sterling Bond Acc – Added to complement our existing option in the strategic bond sector.
• Baillie Gifford Japanese Acc – Removed to accommodate a Japanese fund with a balanced investment approach.
• Man GLG Undervalued Assets Acc – Removed to consolidate the list of UK equity funds. The, similarly managed, Man GLG Income fund remains on the list.
• Liontrust Sustainable Future UK Growth Acc – Removed to consolidate the list of UK equity funds.

July 2024

• iShares Japan Equity Index Fund D Acc – Removed from the list to accommodate the Fidelity Index Japan Fund, given the Fidelity fund’s superior risk adjusted performance profile.
• Fidelity Index Japan P Acc – New addition to the list. Strong long-term performance versus peers, at a low cost.

May 2024

• Allianz Strategic Bond – Removed from the list due to the impending departure of the lead manager.

April 2024

• Jupiter UK Special Situations Acc – Removed from the list due to the departure of the lead manager.

March 2024

• Fidelity Global Special Situations – Removed from the list due to the departure of the lead manager, Jeremy Podger.

October 2023

• JOHCM UK Dynamic – This has been removed to consolidate the list of UK Equity funds.

July 2023

• Amundi MSCI Japan ETF – Having reviewed the two passive options for Japan, an index fund and an ETF, we took the decision to simplify the choices for passive investors in this region, removing the ETF, due to the index fund being a better value selection.
• iShares Core £ Corporate Bond ETF – Review of the sector highlighted that an index fund variant, of the same strategy and from the same issuer, iShares, was a better value selection, for list investors.
• HSBC MSCI China UCITS ETF Acc – Due to the growing economic importance of China, the team believe it would be worthwhile offering investors a way to invest in this region. The HSBC MSCI China ETF offers broad exposure to a mix of both onshore and offshore Chinese stocks, at one of the lowest costs in the market.
• iShares Corporate Bond Index (UK) D Acc – Review of the sector highlighted that this index fund variant, of iShares UK corporate bond index strategy, was a better value selection, for list investors, than their ETF version.
• State Street Global High Yield Bond Screened Index Fund – With the tracker market for Global High Yield bonds maturing, the team are pleased to be able to offer list investors a way to passively access this interesting asset class that has the characteristics of bonds but reacts to similar economic signals as stocks.
• iShares MSCI World Islamic ETF – Shariah compliant investing is a growing area of interest, where investments are made according to the principles of the Islamic faith and Sharia law. We've added an option in the Specialist category, to help investors access this segment of the market.
• Trojan Ethical Fund – Trojan Ethical Fund - This addition offers investors exposure to a multi asset vehicle, managed by a tried and tested management team that has flexibility to vary allocations to any of their 4 asset classes; shares, fixed income, precious metals and cash (cash like instruments) with an overlay of ethical exclusions prohibiting the inclusion of companies selling alcohol, tobacco, armaments and gambling amongst other areas.

May 2023

• Blackrock ICS Sterling Liquidity – Following the sharp rise in interest rates over the past 12 months, holding cash like instruments is now a viable asset class. The Blackrock ICS Sterling Liquidity fund has been added as it has a long heritage and is managed by an experienced duo who manage the fund to maximise income whilst preserving capital.
• JPM Global Equity Income – We have added this fund as it is managed by an experienced management team who have access to an extensive pool of analysts. The team hold a pragmatic investment philosophy targeting a balanced approach between income yield and capital growth.
• Trojan Fund – This addition offers investors exposure in a multi asset vehicle that has flexibility to vary allocations to any of their 4 asset classes; shares, fixed income, precious metals and cash (cash like instruments).
• Fidelity Strategic Bond – Following a review of the sector, we took the decision to remove the fund owing to higher conviction options elsewhere in this part of the market.
• Janus Henderson Absolute Return – We have removed the fund following broader review of the sector. We have other preferences in this part of the market.
• Ninety One UK Alpha – We considered the UK sector to be overpopulated with ideas and have removed the fund in lieu of other preferred options in the sector.
• Trojan Global Income – This has been removed as we sought to consolidate and diversify the list in this part of the market.
• Trojan Income – Following sector review and list consolidation, we have removed the fund from the list owing to preferences elsewhere within the sector.

January 2023

• Blackrock UK Income – This is a core UK Equity Income strategy and has been added. The strategy offers a pragmatic style agnostic approach and is managed by an experienced and well-established management team at BlackRock. The investment approach seeks above average income returns against the benchmark without sacrificing long-term capital growth.
• Liontrust UK Growth – Has been added as we have conviction in this management team who hold a clear philosophy and investment process that have been tried and tested over time. The structure ensures a disciplined and pragmatic investment approach, offering a competitive advantage. The longevity of the team and consistency of implementation provides credibility, with a strong focus on long-term sustainability of profits on companies held within the portfolio.
• CT UK Equity – This has been removed following a review after the retirement of long-term manager, Richard Colwell, late in 2022. We have a higher conviction in the Blackrock UK Income fund which holds a similar investment approach.
• FTF Martin Currie Mid Cap – We took the decision to remove the fund from the Favourite funds list owing to uncertainty with the team dynamic following a series of retirements in recent years.

November 2022

• Invesco High Yield – This is a core high yield strategy. We have added the fund which has experienced fund managers with a tried and tested investment approach underpinned by a clear investment philosophy. The performance has been excellent relative to the broader IA £ high yield peer group over time, both in absolute terms and on a risk-adjusted basis.
• Baillie Gifford – We took the decision to remove the fund from the Favourite funds list owing to higher conviction alternatives available elsewhere within the sector.

May 2022

• iShares Core Global Aggregate Bond ETF GBP Hedged – added to offer low cost exposure to global bonds without the impact of currency movements.
• iShares Core Global Aggregate Bond and M&G Global Macro Bond – both removed to reduce currency risk.

January 2022

• HSBC FTSE All-World Index Tracker Fund C Acc – added as this provides a genuinely global coverage of the stock markets, by including both developed and emerging market regions, with a low ongoing charge.
• iShares MSCI World SRI ETF – added to offer investors a way to responsibly invest in global, developed stock markets, by owning only companies with the strongest ESG scores and minimal controversies.
• iShares Physical Gold ETC – added to give investors a way to gain exposure to the gold price, by investing in physical gold bullion, at a low cost.
• Lyxor Core MSCI World ETF – Already have a global, developed world index fund on the list. Replacing this ETF, in favour of the HSBC FTSE-All World Index Fund, which has broader global exposure.

December 2021

• BlackRock UK Special Situations – added to offer additional choice in the UK equity sector.
• Liontrust Special Situations – removed due to concerns over the size of the fund and its ability to achieve its objectives.

November 2021

• Allianz Gilt Yield – removed due to a preference for gilt exposure to come from low cost passive investment solutions.

July 2021

• Securities Trust of Scotland – added to the list to provide a dedicated global equity income option.

June 2021

• Lightman European – added to the list to offer additional choice in the Europe (ex UK) sector

January 2021

• Schroder Global Equity Income – added to the list to offer additional choice in the Global sector

December 2020

• TB Amati UK Smaller Companies fund – added to offer additional complementary choice in the UK Smaller Companies sector

July 2020

• Artemis Corporate Bond fund – added to offer additional complementary choice in the Corporate Bond sector.
• Invesco Corporate Bond fund – removed due to a lack of conviction in its ability to achieve its stated objective.
• The BMO Responsible Sterling Corporate Bond, Liontrust Sustainable Future Global Growth, Liontrust Sustainable Future UK Growth & Royal London Sustainable Leaders – added to offer additional choice in the Ethical/Sustainable sector

Following a review of the tracker funds on the list, we’ve added:

• Lyxor Core Actuaries UK Gilts Inflation-Linked ETF – a low cost ETF in the UK offering investors exposure to government inflation-linked bonds
• iShares Global Aggregate Bond ETF – offers a mix of global government and corporate bonds, giving investors broad global bond exposure with a single ETF
• iShares MSCI Target UK Real Estate ETF – an innovative fund that carries less volatility than traditional property funds by mixing property shares with inflation linked bonds
• iShares Automation & Robotics ETF – a relevant theme for investors seeking high-growth, high-risk technology focused investments
• Lyxor Core Morningstar UK ETF – it offers a broad coverage of the UK share market with a low ongoing charge
• Lyxor Core MSCI Japan ETF – covering the large and mid-cap Japanese equity market, with one of the lowest charges in that market
• Vanguard FTSE Developed Asia Pacific ex Japan ETF – includes Korea within its fund, allowing for a greater number of holdings in the fund compared to other trackers covering this region

We’ve removed these funds to ensure we offer a focused choice within each asset type. It’s important to note that we don’t see any issues with how these tracker funds are run, instead we prefer a different way of accessing the asset type:

• iShares Core MSCI Pacific ex-Japan ETF
• iShares Global Government Bond ETF
• iShares Overseas Government Bond Index Fund
• iShares UK Property ETF
• SPDR FTSE UK All Share ETF
• Vanguard FTSE Japan ETF
• Vanguard UK Inflation-linked Gilt Index Fund

June 2020

• Kames Ethical Cautious Managed fund – removed from the Favourite funds list, due to the lack of conviction in its ability to achieve its objective

March 2020

• LF Tellworth UK Smaller Companies and TB Evenlode Global Income – added to the list, providing additional complementary choice in the Global and UK smaller companies sectors
• Trojan Global Income – added to the list to offer additional complementary choice in the Global sector
• TB Saracen Global Income & Growth – removed from the list due to a falling fund size
• BNY Mellon Global Income – removed from the list as the lead fund managers announced they are leaving the fund

February 2020

• Merian UK Smaller Companies – removed from the list due to the corporate uncertainty created by the news of an agreed acquisition of Merian Global Investors by Jupiter Fund Management plc.

January 2020

• Allianz Strategic Bond and BlackRock Continental European Income – added to the list, providing additional complementary choice in the European equities and Strategic Bond sectors
• BNY Mellon Global Dynamic Bond – removed from the list following a fall in confidence that it could consistently achieve its stated investment objective

November 2019

• BMO Barclays Global High Yield Bond (GBPH) ETF – removed from the list following the announcement of the closure of the ETF from January 2020
• Troy Trojan Income Inc – changed its name to Trojan Income Inc
• FP Crux European Special Situations Acc – changed its name to TM Crux European Special Situations Acc

August 2019

• Standard Life Global Smaller Companies – changed its name to Aberdeen Standard Investments Global Smaller Companies.

July 2019

• Janus Henderson UK Property PAIF Inc – removed from the list due to continued outflows over a prolonged period of time
• Jupiter Global Emerging Markets Acc – removed from the list due to a falling fund size and increasing fund costs

June 2019

• Newton Global Dynamic Bond – changed its name to BNY Mellon Global Dynamic Bond
• Newton Global Income – changed its name to BNY Mellon Global Income

April 2019

• Lyxor Core MSCI World ETF – added to the list due to its low cost and ability to track the index tightly
• Vanguard USD Emerging Markets Government Bond ETF – added to the list to provide a high-calibre passive offering to complement our active offering in this area
• Schroder Tokyo Acc – removed from the list following the announcement that the fund manager is due to retire
• iShares Core MSCI World ETF and iShares £ Index-Linked Gilts ETF – removed from the list as lower cost, better alternatives have been identified
• BMO Barclays Global High Yield Bond (GBP Hedged) ETF – replaced iShares Global High Yield Corporate Bond ETF as it removes the impact of currency fluctuations

September 2018

We have undertaken an in depth review of the Favourite funds list which has resulted in a number of changes being made. This has seen 11 new funds added to the list that we judge to be amongst the high quality in their field, while 10 have been removed due to us having higher conviction in alternative managers.

The following funds have been added:

• Allianz Gilt Yield Inc
• Franklin UK Smaller Companies Acc
• Janus Henderson UK Absolute Return Acc
• JO Hambro UK Dynamic Acc
• Jupiter Global Emerging Markets Acc
• M&G Emerging Market Bond Inc
• M&G Global Macro Inc
• Montanaro UK Income Inc
• Schroder European Acc
• Schroder Global Recovery Acc
• Troy Trojan Income Inc

The following funds have been removed:

• Artemis European Opportunities Acc
• Fidelity Enhanced Income Inc
• Janus Henderson Fixed Interest Monthly Income Inc
• JP Morgan Multi Asset Income Inc
• Kames Investment Grade Bond Inc
• LF Woodford Equity Income Inc
• Majedie UK Equity Acc
• River & Mercantile UK Equity Income Inc
• Threadneedle Dynamic Real Return Acc
• Unicorn UK Income Inc

August 2018

• Fidelity Global Special Sits Acc, Man GLG UK Income Professional Inc, Royal London Corporate Bond Inc and TwentyFour Corporate Bond Inc – added to the list

June 2018

• VT AJ Bell Passive Global Growth fund – added to the list following launch.

May 2018

• Lyxor FTSE Actuaries UK Gilts ETF and Lyxor FTSE Actuaries UK Gilts 0-5yr ETF – have both been added to the list

• Vanguard UK Gilt ETF, iShares Core UK Gilt ETF and iShares UK Gilts 0-5yr ETF – removed from the list as lower cost, better alternatives have been identified

March 2018

• Artemis Strategic Bond Quarterly Inc – added to the list
• Invesco Perpetual Global Financial Capital – removed from the list following a change in rating

February 2018

• BlackRock Gold and General fund – added to the list
• Franklin UK Mid Cap fund – added to the list
• First State Global Resources – removed from the list following the announcement that First State intends to close its Global Resources capability
• River & Mercantile UK Equity Smaller Companies – removed from the list following the departure of the fund manager

January 2018

• BlackRock Japan Equity Tracker Fund Acc – changed its name to iShares Japan Equity Index Fund Acc

• BlackRock Overseas Govt Bond Tracker Fund Acc – changed its name to iShares Overseas Govt Bond Index Fund Acc

• BlackRock UK Equity Tracker Fund Acc – changed its name to iShares UK Equity Index Fund Acc

August 2017

• Schroder Tokyo fund – downgraded from AAA to A

June 2017

• Unicorn UK Income fund – added to the list
• Schroder UK Dynamic Smaller Companies – removed from the list following the departure of the fund managers

April 2017

• Fidelity Emerging Markets fund – added to the list

  Invesco Perpetual Asian fund – downgraded from AA to A following a change in the fund manager

• GS Emerging Markets Equity portfolio – removed from list following the departure of the fund manager

Our expert investments team have more than 100 years’ combined experience managing funds. They’re tasked with combing through more than 4000 funds available and making their selections. Meet our investments team and read more about their backgrounds.