For a 5-year investment term, selecting active fund managers can provide better risk-adjusted returns compared to passive ETFs, especially in volatile markets. Here are top-rated active fund managers across different asset classes:

1️⃣ Bonds – Stability & Yield (25-30%)

Active Bond Funds & Managers:

✅ PIMCO Global Bond Fund (Managed by Daniel Ivascyn – PIMCO)

• Global exposure with a strong track record in active bond management.
• Focus on government & corporate bonds with tactical shifts.

✅ Baillie Gifford Strategic Bond Fund (Managed by Lesley Dunn & James Carver)

• Flexible allocation across government, corporate, and high-yield bonds.
• Strong research-driven selection, particularly for UK investors.

✅ M&G Optimal Income Fund (Managed by Richard Woolnough – M&G Investments)

• Actively shifts between bonds & equities based on market conditions.
• Strong outperformance over passive bond index funds.

2️⃣ Equity Funds – Global & Thematic (20-25%)

Active Global Equity Funds:

✅ Fundsmith Equity Fund (Managed by Terry Smith – Fundsmith LLP)

• Long-term focus on high-quality, defensive growth stocks (e.g., Microsoft, L’Oréal).
• Low turnover, excellent track record since inception.

✅ Baillie Gifford Global Discovery Fund (Managed by Douglas Brodie – Baillie Gifford)

• Focuses on innovative, high-growth companies (tech & biotech).
• Higher risk but strong long-term potential.

✅ Blue Whale Growth Fund (Managed by Stephen Yiu – Blue Whale Capital)

• High-conviction, growth-focused fund with exposure to top global tech stocks.

Active Dividend Funds:

✅ JP Morgan Global Equity Income Fund (Managed by Sam Witherow – JP Morgan AM)

• Focuses on strong dividend-paying stocks for stable returns.

✅ Schroder Global Dividend Maximiser (Managed by Nick Kirrage & Kevin Murphy – Schroders)

• Uses covered calls strategy to boost dividend yield.

3️⃣ UK & US Stock Market Active Funds (15-20%)

✅ Lindsell Train UK Equity Fund (Managed by Nick Train – Lindsell Train)

• High-conviction, buy-and-hold strategy focusing on quality UK companies.

✅ Baillie Gifford American Fund (Managed by Tom Slater – Baillie Gifford)

• Strong focus on high-growth US stocks (Amazon, Tesla, Shopify).

✅ Artemis US Select Fund (Managed by Cormac Weldon – Artemis)

• Actively picks US stocks with strong momentum & growth.

✅ Fidelity Special Situations Fund (Managed by Alex Wright – Fidelity)

• Invests in undervalued UK companies with recovery potential.

4️⃣ Property & REITs (10-20%)

✅ TR Property Investment Trust (Managed by Marcus Phayre-Mudge – Janus Henderson)

• Actively selects high-quality UK & European real estate assets.

✅ BMO Commercial Property Trust (Managed by Richard Kirby – Columbia Threadneedle)

• Focuses on UK commercial properties with strong rental yields.

✅ Schroder Global Cities Real Estate Fund (Managed by Tom Walker – Schroders)

• Invests in real estate in major global cities (London, NYC, Tokyo).

5️⃣ Alternative & Thematic Active Funds

Technology & Innovation:

✅ Polar Capital Global Technology Fund (Managed by Ben Rogoff – Polar Capital)

• Actively manages exposure to disruptive tech stocks.

✅ AXA Framlington Global Technology Fund (Managed by Jeremy Gleeson – AXA IM)

• Picks emerging & established tech firms with strong growth.

Healthcare & Biotech:

✅ Baillie Gifford Health Innovation Fund (Managed by Kirsty Gibson – Baillie Gifford)

• Focuses on biotech & pharma innovation.

✅ Polar Capital Healthcare Opportunities Fund (Managed by Gareth Powell – Polar Capital)

• Invests in major global healthcare & biotech companies.

6️⃣ Cryptocurrency Fund Options (5-10%)

✅ ARK Next Generation Internet ETF (ARKW) – Cathie Wood (ARK Invest)

• Indirect exposure to Bitcoin & blockchain-based firms.

✅ Grayscale Bitcoin Trust (GBTC) – Largest institutional Bitcoin fund.

✅ Bitwise 10 Crypto Index Fund – Exposure to top 10 cryptocurrencies.

Final Thoughts & Adjustments

• Prefer less volatility? Increase PIMCO Bond Fund, Fundsmith Equity Fund, JP Morgan Equity Income Fund.
• More aggressive? Increase Baillie Gifford Global Discovery, Blue Whale Growth, ARKW (crypto exposure).
• More UK-based focus? Add Lindsell Train UK Equity, Schroder UK Property Fund.

Would you like recommendations tailored for tax efficiency (ISAs, SIPPs, etc.)? 😊