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TD Recommended Funds

We recognise that there is a vast range of Funds to choose from for your portfolio, so we’ve selected a list of stand-out funds to help you get started.

Expert View - We've partnered with Morningstar to ensure the funds identified are selected from an independent source.

Ongoing alerts - From time to time we may change our recommendations and if you have bought a recommended fund we will email you to let you know the changes.

Regular updates – Each quarter we'll be producing our funds newsletter to ensure you’re fully up to speed with the global economy, fund performance and articles together with our current recommendations.

This service is designed for customers who are knowledgeable and have experience of investing and is not suitable for everyone. If you are unsure please speak to a financial adviser. To access our full range of funds please use our Fund Selector.


View our latest TD Recommended Funds update

How the funds are selected


Important Changes to our Recommended Funds

Funds which have been added to and removed from the Recommended Funds.


Following the Investment Committee meeting in October 2016, we have made the following change to TDDI Recommended Funds list:

Funds added

Jupiter India

Why this fund has been added

India has been called the "biggest turnaround story" in emerging markets. The Indian government has a strong focus on long-term, gradual GDP growth. A number of successful reforms have contributed to this growth, including increased infrastructure spending, reforms in the power sector and streamlining the country’s much maligned bureaucracy. Fund manager Avinash Vazirani has been investing in the Indian equity market for over 20 years and has run this fund since inception in February 2008. His growth at a reasonable price approach leads him to favour small- and mid-cap names with strong growth prospects that have not been fully priced by the market. His focus is on high quality companies based on his belief that fundamentals will prevail, particularly in difficult market environments. The fund has an excellent long-term performance record and we feel it is a welcome addition to our Recommended Funds list.


Following the Investment Committee meetings in June 2016, we have made the following changes to TDDI Recommended Funds list:

Funds removed

Baring Europe Select

Why this fund has been removed

Barings announced in March 2016 it would be soft closing the fund in order to protect the interests of existing investors following a tripling of assets over the last five years to more than £1.5 billion. While it said it could support a higher level of assets it wants to manage further inflows as assets increase. Although the fund will continue to accept investments from existing clients, we respect the manager’s decisions to sensibly manage asset levels and therefore we have a policy of removing funds from our Recommended Funds list when they no longer accept investments from new customers. The fund remains a solid investment for existing investors but for new investors we have replaced the fund with Old Mutual Europe ex UK Smaller Companies.

Funds added

Old Mutual Europe ex UK Smaller Companies

Why this fund has been added

The fund was awarded a Bronze Morningstar Analyst Rating in June 2016. Manager Ian Ormiston has more than 20 years’ experience in European equities. Although the fund was only launched in November 2014, Ormiston managed the Ignis European Smaller Companies fund from 2007 to 2014 using the same investment philosophy, outperforming both the index and peer group average over this time. He seeks out company-specific catalysts which will unlock value, preferring to invest once a company has reached profitability and is expanding sales growth. The fund’s bias to quality stocks tends to result in relative outperformance in weaker markets. Morningstar believes Ormiston has demonstrated consistency in the application of his investment approach and a sensible balance to portfolio construction.

Pictet Global Emerging Debt

Why this fund has been added

When appropriate we like to offer our customers access to additional asset classes which offer further diversification benefits. The environment for emerging market bonds has improved and yields look attractive compared to developed market government bonds. The relatively low correlation of emerging market bonds to other asset classes offers good diversification properties. The Pictet Global Emerging Debt fund offers a portfolio of bonds primarily from emerging market governments issued in US dollars. The fund aims to outperform the JP Morgan EMBI Global Diversified index by 1% to 3% annually, and the managers enjoy freedom to deviate from the benchmark based on their top-down and bottom-up views. The team, led by Simon Lue-Fong, comprises eight portfolio managers based in London and Singapore. The fund’s flexibility, and its ability to moderate the level of drawdowns versus its peers, mean it is a good emerging market bond option for our Recommended Funds list.


Following the Investment Committee meetings in May 2016, we have made the following changes to TDDI Recommended Funds list:

Funds removed

Standard Life Investments Global Absolute Return Strategies

Why this fund has been removed

Standard Life Investments Global Absolute Return Strategies (GARS) has been a successful fund, delivering first quartile performance over five years and exceeding its Libor +5% target. Returns have moderated in recent years, however. It has now grown its assets to around £60 billion in the strategy. While the company believes the strategy has capacity beyond this level, we are uncomfortable as it is inevitable that as assets grow the opportunity set diminishes and liquidity can become an issue.

The fund is managed by the Multi-Asset Investing Team, and relies on the idea generation and decision making of the Strategic Investment Group (SIG). Since 2010 only half the SIG remains from the original 12. While the team remains experienced and well resourced, it has lost its team head and changed substantially in recent years.

Attribution analysis of the fund’s returns show it has been heavily dependent on investments in fixed income. During periods when equities have performed well we would have expected a larger contribution from equities, particularly given the substantial part of the risk budget allocated to them. We believe other absolute return funds are better placed to deliver positive returns ahead of cash over the medium term, and have removed the fund from our Recommended Funds list.


Following the Investment Committee meetings in April 2016, we have made the following changes to TDDI Recommended Funds list:

Funds added

M&G Global Emerging Markets

Why this fund has been added

Matthew Vaight has managed the fund since its launch in February 2009. He takes a long-term view and adopts a bottom-up stock selection approach. The fund has a value bias as it seeks to invest in out of favour companies, often with a bias towards mid and small-cap names. The long-term performance record of the fund remains strong despite some short-term weakness. The disciplined investment process and value style makes it a timely and interesting addition to our Recommended Funds list.

Old Mutual North American Equity

Why this fund has been added

The fund is managed by a team of three, headed by Ian Heslop. The fund is managed using a multi-factor quant strategy with a qualitative overlay and has no particular style bias. Its aim is to ebb and flow with the prevailing style biases in the market. It copes well in weaker markets, and would be expected to perform best in trending markets while struggling more during periods of heightened volatility. The fund approach is a modern one, and one that has proved that it can outperform in the US where many active managers tend to find it difficult. Therefore this is a welcome addition to the Recommended Funds list.

Kames Ethical Equity

Why this fund has been added

The fund, which has been managed by Audrey Ryan since 2000, combines a strict ethical screen with bottom-up fundamental analysis. The stock selection process assesses the ethical fundamentals of each company and combines this with an understanding of what the current valuation implies. The fund’s ethical mandate will result in a return profile which can deviate significantly from that of its benchmark. It typically has a bias towards mid-cap stocks and from a style perspective to growth stocks. This fund is a consistent member of our Best of British funds list.

Veritas Asian

Why this fund has been added

The fund has been managed by Ezra Sun since inception in October 2004. He is supported by four analysts, two based in Hong Kong, and the firm’s global equity team. Sun adopts a thematic approach, blending core and shorter-term tactical views – the tactical overlay is designed to help the fund perform in different market environments. Overall the fund would be expected to outperform in a market environment where company fundamentals are being rewarded. The fund has a performance fee of 20% of the NAV, where the NAV is higher than both a high water mark and a hurdle rate. Despite this the performance track record (inclusive of all fees) is attractive. This fund complements our other Asian equity recommendations and benefits from Sun’s knowledge of the region and effective implementation of his process.

Polar Capital Global Insurance

Why this fund has been added

Financials is an interesting area in which to invest, and this fund offers access to the insurance sector within that. Emphasis is on finding quality companies with strong management teams, and those with the ability to grow equity per share. The fund tends to have a bias to mid-cap stocks and at a country level to the US. The specialist nature of the mandate and a bias to higher quality names can offer relative protection in weaker markets. The fund has a performance fee of 10% of the fund’s outperformance of the MSCI Daily Net TR World Insurance index. The managers are very experienced and have a proven ability of navigating the fund through sub sectors of the insurance industry while still maintaining a broadly diversified portfolio.

Funds removed

Stewart Investors Asia Pacific Leaders

Why this fund has been removed

Long standing fund manager Angus Tulloch will step down from his lead role in July 2016. He will be succeeded by David Gait, who is lead manager on the group’s sustainability funds, with Sashi Reddy working alongside him. The fund’s investment mandate will also alter to follow the sustainability strategy developed and used by Gait on his Asia Pacific Sustainability fund. We are not comfortable with the change of mandate and as a result have removed the fund from our Recommended Funds list.

Jupiter Merlin Balanced Portfolio

Why this fund has been removed

In line with a wider industry trend we have witnessed less customer interest in and reduced demand for multi-asset funds within our Recommended Funds list. The removal of this fund alongside a number of other multi-asset funds is a reflection of that, ensuring our Recommended Funds list best fits with our customers’ needs.

Jupiter Merlin Income

Why this fund has been removed

In line with a wider industry trend we have witnessed less customer interest in and reduced demand for multi-asset funds within our Recommended Funds list. The removal of this fund alongside a number of other multi-asset funds is a reflection of that, ensuring our Recommended Funds list best fits with our customers’ needs.

JPM Multi-Asset Income

Why this fund has been removed

In line with a wider industry trend we have witnessed less customer interest in and reduced demand for multi-asset funds within our Recommended Funds list. The removal of this fund alongside a number of other multi-asset funds is a reflection of that, ensuring our Recommended Funds list best fits with our customers’ needs.

Kames Ethical Corporate Bond

Why this fund has been removed

We have seen limited demand from our customers for this fund, however we are keen to continue to offer an ethical fund and have replaced this fund with Kames Ethical Equity which we believe will appeal to a wider audience.


Following the Investment Committee meetings in March 2016, we have made the following changes to TDDI Recommended Funds list:

Funds removed

CF Woodford Equity Income

Why this fund has been removed

Although the fund has performed exceptionally well since inception, we note that Woodford’s performance has reached a pinnacle recently and like all managers, Woodford cannot outperform all the time. The fund has grown significantly and is now £8.3bn. Together with the other funds run by Woodford the firm’s assets are over £12bn. We believe there comes a point when the size of the fund hampers the manager’s ability to react, trade and ultimately continue outperforming. Also, the Investment Association have indicated that they may remove the fund from the IA UK equity income sector because the yield is falling short of the sector’s requirements. The income funds on our Recommended list are the Threadneedle and Royal London UK Equity Income funds. JO Hambro UK Dynamic could also be considered.

Following the Investment Committee meetings in Feburary 2016, the following changes have been made to the TDDI Recommended list.

Funds removed

Newton Global Income

Why this fund has been removed

Fund manager James Harries, who had run the fund since 2005, stepped down and left the company in December. Consequently Morningstar placed the fund’s Analyst Rating, which had previously been Silver, Under Review. As Harries’ own investment style was a key characteristic of the fund, we have decided to remove the fund from the Recommended List.

AXA Framlington Managed Balanced

Why this fund has been removed

Manager Richard Peirson has handed over management of the UK equities and fixed income portions of the fund. Overseas equities continue to be managed by AXA Framlington’s regional teams, leaving Peirson with overall responsibility for asset allocation and fund cash flows. The fixed income mandate, which will be run by Nick Hayes, has been widened to include investment grade corporate bonds. Jamie Hooper was given responsibility for the UK equities portion in November 2015.

Funds added

Threadneedle UK Equity Income

Why this fund has been added

Fund manager Richard Colwell adopts a total return and pragmatic investment approach. The medium-term macro outlook ensures the fund is positioned in line with the manager’s market expectations and is not overly responsive to short-term market moves. Colwell’s strength in stock selection is a good complement to colleague Leigh Harrison’s top-down input. The combination of manager experience, pragmatism, market awareness and the emphasis on total return make this a strong fund for those seeking exposure to UK equity income.

MFM Slater Growth

Why this fund has been added

The fund is managed by Mark Slater, supported by experienced analysts Bryan Quinton and Barrie Newton, who both have more than 30 years of investment experience. It offers investors exposure to a UK growth fund typically with a small-cap bias. Stock selection has been strong over the last five years. Slater’s unconstrained style and concentrated growth orientated approach gives investors a differentiated offering from other UK growth funds.

Artemis Global Income

Why this fund has been added

This fund is mainly invested in the developed markets and has a balanced approach to growth and income. Its top-down macroeconomic overlay differentiates the fund and has contributed to the fund’s consistent outperformance. Fund manager Jacob de Tusch-Lec’s approach has led to good representation in growth sectors such as technology and consumer discretionary, and to be underweight oil and materials.

Veritas Global Equity Income

Why this fund has been added

This fund is a good option for investors seeking an out-of-favour value fund. Managers Andy Headley and Charles Richardson are theme-based value investors with a focused portfolio of well researched shares. It has a tilt towards the UK (less US orientated) and healthcare stocks. As it shuns the consumer discretionary sector and the US it has missed some of the growth returns of late. However, we feel it is well positioned to perform well in the medium to long term.

2 funds have been removed from the TD Recommended Funds since 11/09/2015.

River & Mercantile UK Small Companies

Why this fund has been removed

This fund has been soft closed. Soft closing a fund is a means by which the size of the Fund is controlled by managing inflows. Whilst existing investors in the Fund will remain unaffected, new investors will be charged to invest in the fund.

Expand Read more

River & Mercantile have decided to soft close the fund so as they can manage capacity. They are rightly mindful that capacity needs to be controlled to ensure that they can continue to deliver the best possible risk-adjusted returns over the long term.

If you currently hold the R&M fund, we recommend that you stay with the fund as we still highly rate it. However, the manager wants to limit the size of the fund and we believe it is prudent to remove it from the Recommended List and we have found an alternative for new investors.

We have chosen Liontrust UK Smaller Companies Fund as a replacement.

Fidelity Cash Fund

Why this fund has been removed

The Investment Committee has removed this fund from the recommended list because the committee believes that we cannot accept such poor returns for cash and investors are better off keeping their cash in the bank. We do not question the quality of the fund manager who we think is doing an excellent job aiming to squeeze out every last drop of return from its investments. But with interest rates looking like staying lower for longer, this asset class will struggle to provide satisfactory returns.


Following the Investment Committee meetings in September and October 2015, we have added the following funds to TDDI Recommended list.

UK Equity Funds

Majedie UK Equity

Why this fund has been added

A worthy option for investors seeking a one-stop-shop UK equity fund as the portfolio invests from large- to small caps. Here there is a team approach and the team has worked together since the good old days of Mercury Asset Management (now part of Blackrock).

JO Hambro UK Dynamic

Why this fund has been added

A concentrated fund that holds roughly 50 companies. The fund manager is focused on companies that are restructuring or recovering or are purely unloved.

Man GLG Undervalued Assets funds

Why this fund has been added

Man GLG Undervalued Assets funds focus on so-termed value companies which stocks are trading at discounts to their true worth. The manager is up and coming having joined Man GLG in 2013 where he has a chance to prove his talent..

Liontrust UK Smaller Companies

Why this fund has been added

Liontrust UK Smaller Companies could be of interest to AIM traders as the fund contains a number of small-cap names, making it a means to broaden-out AIM exposure across a diversified pool of small-cap stocks.

Royal London UK Equity Income

Why this fund has been added

For income investors, we’ve introduced Royal London UK Equity Income, a fund generating a high yield and total return through its investments in dividend-paying stocks.

International and Specialist Funds

Baillie Gifford International

Why this fund has been added

A global growth fund with a portfolio that excludes UK stocks so it could be a useful complement for investors holding only UK equity funds. The Edinburgh-based fund managers seek growth companies resulting in a bias to growth sectors such as biotech and information technology.

Guinness Global Energy

Why this fund has been added

A specialist fund focusing on a small segment of the stock market, namely oil-and-gas stocks. Although low oil prices have pulled down the fund’s returns in recent months, we think the fund remains a good way to access the growth potential of the sector in the coming years and it has experienced fund managers at the helm. .

Julius Baer Luxury Brands

Why this fund has been added

A specialist fund that is suitable for investors seeking access to the high-growth luxury brands sector. Luxury brands generally benefit from pricing power and heritage premium. By this we mean luxury brands keep their pricing power better than everyday items in difficult financial climates and their products can’t be replicated overnight. The Fund is one that has close links to established brands in Switzerland, Italy and France. And, with global wealth expected to rise 6% annually, driven by North America, Europe and Asia, global spending could turn to luxury goods.


Following the Investment Committee meetings in November 2015, we have made the following changes to TDDI Recommended Funds list:

Schroder Asian Income

Why this fund has been added

The manager uses a valuation-driven, bottom-up approach but with a degree of pragmatism. The fund benefits from the expertise of the manager, the support of a strong team both in London and Asia and from a sound process. It can perform well in weaker markets and its dividend policy serves as a good quality filter for stock selection.

Legg Mason ClearBridge US Aggressive Growth

Why this fund has been added

The concentrated nature and high active share of the fund make this an interesting proposition for TD customers. The managers look for companies with significant growth prospects and a sustainable earnings profile. It benefits from the expertise of one of the longest serving growth managers in the industry, Richard Freeman, who has managed the fund since 1983. Although volatile, the fund has delivered strong performance over the long term.

F&C Multi Manager Navigator Distribution

Why this fund has been added

The fund is managed by an experienced team who have worked together since 1996. It is managed using a long-term approach with an emphasis on building a portfolio with diversified sources of income, and can potentially offer a higher level of income than other multi-asset funds.

Baillie Gifford American

Why this fund has been removed

Following an internal review of Baillie Gifford’s North American equity capability the company added more resources to the team, including a new team head. Manager Ian Tabberer subsequently left, handing over responsibility to Gary Robinson. The continued turnover in the team and possible future hirings has lead Morningstar to give the fund an Analyst Rating of Neutral. We replaced the fund in the Recommended Funds list with Legg Mason ClearBridge US Aggressive Growth fund.

Newton Asian Income

Why this fund has been removed

Fund manager Jason Pidcock left the company in May 2015 and passed management of the fund to Rob Marshall-Lee. While Marshall-Lee has experience in the region, he has never before had responsibility for a standalone Asia fund or an income strategy. Morningstar feels he needs some time to familiarise himself with some of the non-emerging markets elements of the universe. The fund currently has an Analyst Rating of Neutral and we have removed it from the list, replacing it with Schroder Asian Income.

Allianz Gilt Yield

Why this fund has been removed

Following the news that Mike Riddell was replacing manager Michael Amey at the end of November Morningstar placed its Bronze Analyst Rating on the fund Under Review. Allianz Global Investors also plans to bring management of the fund in house – it was previously sub-advised by PIMCO. Following these changes and the fund’s poor performance this year we have decided to remove it from our Recommended Funds list.

Blackrock UK

Why this fund has been added

BlackRock UK, a direct replacement for the Artemis UK Growth fund. It has around 50% exposure to growth companies, and has recently been overweight consumer cyclical stocks. It invests across the market capitalisation range with a bias towards giant-sized growth companies. The fund is smaller than some in the sector which potentially will allow manager Nick Little to be more nimble. The Artemis fund is remaining on the list as a higher risk option.

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How the funds are selected

Further reading

Find out more why funds are a popular choice for many investors and how they can help you build a diverse portfolio to suit your own investment needs.

Read Investing in Funds guide

Asset Allocation

More on our research methodology

Our funds are drawn from the whole of the market and selected using a two pronged approach with Morningstar's analyst team providing unbiased, in-depth research that is analysed by our own Investment Department.

Morningstar undertakes both quantitative and qualitative fund research, which creates a holistic view of funds by combining an assessment of past performance with a forward looking opinion. Morningstar conduct regular face-to-face meetings with Fund Managers and undertake reviews in relation to performance, personnel, strategy, research capabilities and other qualitative factors that may impact the Fund Manager’s ability to achieve the desired investment results.

Morningstar's research is then analysed by our own internal Investment Department and is presented to our Investment Committee who meet regularly to discuss findings from the on-going fund research and the effect of continuing with these funds or replacing them with better options. The end result is a list of recommended funds to consider alongside supporting guidance on how these funds may fit within a portfolio or behave in market environments.

TD Recommended Funds are monitored on an ongoing basis and recommendations are updated as soon as possible following any event deemed material to our opinion of a fund (e.g. a manager or strategy change) or at least quarterly, whichever the sooner.

Discounted initial fee

Some funds carry an upfront cost imposed by the Fund Manager, referred to as an Initial Sales Charge, that in the majority of cases we have discounted for you.

Ongoing charges

Funds carry an on-going or annual management charge imposed by the Fund Manager for covering the cost of managing the fund.

Risk Rating

The Risk and Reward profile of a Fund is found in the Key Investor Information Document (KIID) and demonstrates where the Fund ranks in terms of its potential risk and reward. The higher the rank (e.g. 5, 6 or 7) the greater the potential reward but the greater the risk of losing money. It is based on past data, may change over time and may not be a reliable indication of the future risk profile of the Fund . You should be aware that even the lowest risk class (e.g. 1, 2 or 3) can lose you money and that extreme market circumstances can mean you suffer losses in all cases.

Who are Morningstar


Morningstar UK have operated since 2000 and offer unbiased, objective information to investors on a wide range of investment funds.

Their investment research covers all types of investment strategies; both active management by the Fund Manager and passive strategies that track an index or indices. Morningstar were named winner by Investment Week in its "Best Fund Rating and Research" service category at the Fund Services Awards 2014.

Morningstar Analyst rating

Our funds are rated by Morningstar in relation to their price, performance, strategy and management, and carry different ratings:

Gold rating is a best of breed fund.

Silver rating is a fund with many notable strengths.

Bronze rating is a fund with advantages outweighing its disadvantage.

Under review - A fund that is being temporarily reviewed due to a significant event (e.g. fund manager departure or change of investing strategy) and will be designated a rating in due course.

Neutral rating - A fund that won't likely deliver standout returns.

Negative rating - A fund with significant flaw that will hamper its future performance.

Who are Morningstar


Morningstar UK have operated since 2000 and offer unbiased, objective information to investors on a wide range of investment funds.

Their investment research covers all types of investment strategies; both active management by the Fund Manager and passive strategies that track an index or indices. Morningstar were named winner by Investment Week in its "Best Fund Rating and Research" service category at the Fund Services Awards 2014.

Investment Risk: Ten things to consider