6. Legal & General International Index Trust
Invest in more than 2,000 companies around the world for a minimal price tag. Consider this at the heart of any portfolio.
Charge: 0.13pc | Cheapest share class: C | Five-year return: 79pc
7. Scottish Mortgage Investment Trust
Baillie Gifford’s flagship fund had a tough few years as interest rates rose, but it offers exposure to a concentrated portfolio of high-growth stocks, including Elon Musk’s SpaceX and Nvidia.
Charge: 0.31pc | Ticker: SMT | Five-year return: 12.7pc
8. Orbis Global Balanced
This multi-asset fund stands out for its unique fee structure. Investors only pay if the fund outperforms its benchmark; if it underperforms, they get refunded. This should mean the management team is highly motivated to deliver superior returns. Alec Cutler, the fund’s manager, takes a contrarian approach and prides himself on finding overlooked opportunities.
Charge: 0pc base fee with refundable performance fee of 40pc of out-performance refundable at 40pc for under-performance | Cheapest share class: Standard | Five-year return: 126.2pc
9. JP Morgan American Investment Trust
Although this trust had a tough year, it still managed double-digit returns – and over 10 years has shone brightly, with a 349pc return. This blend of value and growth investing offers diversification without sacrificing performance, and should also defend when markets turn.
Charge: 0.35pc | Ticker: JAM | Five-year return: 104.6pc
10. JP Morgan Emerging Markets Growth & Income Investment Trust
This is another fund that has proved it is worth sticking with, and the experience of Austin Forey continues to right the ship in yet another tough year. We will continue to monitor performance but keep the faith in this £1.4bn trust.
Charge: 0.79pc | Ticker: JMGI | Five-year return: 16.9pc
11. iShares Core S&P 500 Ucits ETF
Rounding out the trinity of core holdings, any investor must consider owning the S&P 500 as cheaply as possible. Consider this to complement your UK and global tracker funds.
Charge: 0.07pc | Ticker: CSPX | Five-year return: 91.5pc
12. The Global Smaller Companies Trust
Since appointing Nish Patel as manager, the Global Smaller Companies Trust has continued to justify its 137-year existence. It is one to continue monitoring but it has happily maintained performance against comparable funds investing in the same space.
Charge: 0.74pc | Ticker: GSCT | Five-year return: 37.2pc
13. Liontrust European Dynamic
This £2.3bn fund, which is a new addition to our list, has a concentrated holding of 31 companies ranging from Deutsche Bank to Ryanair, and has outperformed an already impressive European market in recent years. Managers James Inglis-Jones and Samantha Gleave continue to impress with top-quartile performance over every period.
Charge: 0.84pc | Cheapest share class: I | Five-year return: 100.6pc
