What peer groups do you use for the Favourite funds list?
Answer
When researching the AJ Bell Favourite funds list, we create 'peer groups'. These help us compare a passive fund with its peers, such as those in the same sector and of a similar size.
To be included in our peer groups, passive funds need to be:
- GDP-denominated
- Listed on the London Stock Exchange (if they’re ETFs or investment trusts)
- In the same industry-defined peer group, according to The Investment Association categories or Morningstar Global Categories
All passive funds also need to meet our selection criteria. We’ll only include those with an AJ Bell-approved manager and sufficient assets under management to enable large-scale investment. For fixed-income investments, we may also impose duration restrictions to make sure the peer group is relevant.