InvestmentsFeb 7 2023

Two Fidelity funds fall off Bestinvest's top funds list

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Two Fidelity funds fall off Bestinvest's top funds list
A woman stands in front of an electronic stock board showing Japan's Nikkei 225 index in Tokyo. Fidelity's Japanese index fund was not included in Bestinvest's best funds list (AP Photo/Eugene Hoshiko)

Fidelity’s emerging markets and Japanese index fund fell out of Bestinvest’s best funds list after both underperformed their benchmark in 2022.

Five other funds dropped out of the annual list, including the Liontrust Sustainable Future Monthly Income Bond, and CT UK Equity Income.

Changes since December 2022



Allianz Technology Trust

TM Tellworth UK Smaller Companies

Murray Income Trust

Liontrust Sustainable Future Monthly Income Bond

Fulcrum Diversified Absolute Return

Fidelity Emerging Markets

Ninety One Global Environment

Fidelity Index Japan

Fidelity European

FP WHEB Sustainability


CT UK Equity Income


TM CRUX European Special Situations

The Fidelity Emerging Markets fund lost 25.3 per cent in 2022, compared with a 15.3 per cent loss by its benchmark and the wider global emerging markets equity sector losing 13.2 per cent.

The other fund removed from the list is Fidelity’s Index Japan fund, which tracks the performance of the MSCI Japan index, which lost 6.8 per cent in 2022.

Index funds are taken off the list if another lower-cost version of the same tracker is found, or if the underlying index is not the best approach for that market. 

Bestinvest’s best funds


Top Funds



UK Equities - Growth

Mercantile Investment Trust

Liontrust UK Growth

Premier Miton UK Growth

UK Equities - Income

BlackRock UK Income

Montanaro UK Income


Target Absolute Return and Multi-Asset

Lazard Rathmore Alternative

TM Fulcrum Diversified Absolute Return

Trojan Fund

Fixed Income

Janus Henderson Strategic Bond

TwentyFour Absolute Return Credit



Barings Europe Select Trust

BlackRock Continental European Income

BlackRock European Dynamic


Jupiter Japan Income

JPM Japan

iShares Japan Equity Index

Global Emerging Markets and Asia Pacific

Aubrey Global Emerging Markets Opportunities

Stewart Investors Asia Pacific Sustainability

Schroder ISF Asian Total Return

North America

Premier Miton US Opportunities

Findlay Park American Fund

Loomis Sayles US Equity Leaders


GuardCap Global Equity

Brown Advisory Global Leaders


Ethical and Sustainable

Guinness Sustainable Energy

Ninety One Global Environment

CT Responsible Global Equity

Real Assets

3i Infrastructure

International Public Partnerships

Source: Bestinvest

The list is broken down into 12 sectors within which the firm's 300-strong investment team have selected their top two to three funds, as well as a number of fund tables.

The criteria used for judging include managers who are not constrained by “hugging benchmarks”, who personally invest in their own funds and are willing to limit the size of their funds if this starts to hamper the way it is managed.

Some 127 investments appear on the list, covering 30 listed investment trusts, 10 exchange-traded funds and two exchange traded commodities. 

One of the new trusts on the list is Abrdn’s £1.17bn Murray Income Trust.

The trust has returned below its benchmark in the past year, with its net asset value dropping 6 per cent, compared with a 0.3 per cent rise from the FTSE All-Share. 

Managed by Charles Luke, the trust is ahead on a five-year basis, beating its benchmark by more than 15 percentage points, and it is currently trading on a 5.1 per cent discount to NAV.