Fidelity launches list of top 50 recommended funds

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Fidelity International has launched a list of 50 recommended funds for customers, with funds from M&G, Invesco Perpetual and BlackRock making the list.

The Select 50 list, which is created from a two-part selection process, notably does not include the Woodford Equity Income fund, run by star manager Neil Woodford.

Run via Fidelity’s Personal Investing platform, the list rivals the Wealth 150 offered by Hargreaves Lansdown.

Select 50 is broken down into eight parts of the market: alternatives, Asia and emerging markets, bonds, Europe, global, Japan, North America and UK.

The first part of the selection process, which is conducted by Fidelity’s multi asset team, involves quantitative and qualitative research, including performance data over different time periods and market conditions, as well as site visits and manager meetings.

The second part involves negotiating benefits on behalf of customers, including discounts on fees, as well as access to the fund manager and quality of fund information.

Just over half of the funds offer a discount through Fidelity’s platform, ranging from five to 10 basis points.

Tom Stevenson, investment director for personal investing at Fidelity International, says feedback from customers is that they prefer to choose funds from a short and focused list. Fidelity’s Personal Investing platform offers more than 2,000 funds.

Notable funds in the list include the M&G Optimal Income fund and the M&G Corporate Bonds fund, run by Richard Woolnaugh, as well as nine Fidelity funds across six of the available categories, excluding Japanese equities and alternatives.