A total of 16 funds from May's Best of the Best Selection make it into June's selection. Below I list this month's selection in full with the 16 funds that regained their place in green while the new additions are in black.
In fact, the reason I have included the full list here is following a request to do so from an 80-20 Investor subscriber. Remember if you have any feedback or development requests for 80-20 Investor please let us know so that we can look to act upon them, as I have here.
June's Best of the Best Selection
(funds unchanged from last month are in green while new additions are in black)
| Name | Sector | ISIN Code | Risk level |
| 7IM - Moderately Cautious | Mixed Investment 0%-35% Shares | GB0033953497 | Low risk |
| 7IM - Unconstrained | Targeted Absolute Return | GB00B75MS619 | Low risk |
| Aberdeen - European High Yield Bond | Sterling High Yield | GB00B77QLR32 | Low risk |
| Aberdeen - European Property Share | Property | GB00B0H5MF69 | High risk |
| Aberdeen - UK Smaller Companies Equity | UK Smaller Companies | GB00B07T4636 | Medium risk |
| Artemis - Monthly Distribution | Mixed Investment 20%-60% Shares | GB00B74BQB01 | Low risk |
| Aviva Inv - European Equity | Europe Excluding UK | GB0032494246 | High risk |
| Aviva Inv - High Yield Bond | Sterling High Yield | GB00B3CGJ878 | Low risk |
| AXA - Sterling Index Linked Bond | UK Index - Linked Gilts | GB00B0LLCP07 | High risk |
| First State - Global Property Securities | Property | GB00B1F76L55 | High risk |
| Franklin - UK Smaller Companies | UK Smaller Companies | GB00B7FFF708 | Medium risk |
| GLG - Continental Europe | Europe Excluding UK | GB00B0119370 | High risk |
| GLG - Japan CoreAlpha | Japan | GB00B0119933 | Medium risk |
| Henderson - Japan Opportunities | Japan | GB0007683203 | Medium risk |
| Henderson - UK Smaller Companies | UK Smaller Companies | GB0007447286 | Medium risk |
| HSBC - Chinese Equity | China/Greater China | GB0000204395 | High risk |
| JPM - Cautious Managed | Mixed Investment 0%-35% Shares | GB00B09RGK38 | Low risk |
| Jupiter - Distribution | Mixed Investment 0%-35% Shares | GB0031294183 | Low risk |
| Kames - Ethical Cautious Managed | Mixed Investment 20%-60% Shares | GB00B1N9DX45 | Low risk |
| L&G - Global Emerging Markets Index | Global Emerging Markets | GB00B4KBDL25 | High risk |
| M&G - Japan | Japan | GB0030938475 | Medium risk |
| Neptune - UK Mid Cap | UK All Companies | GB00B3D7FD61 | Medium risk |
| Old Mutual - Cirilium Conservative | Mixed Investment 0%-35% Shares | GB00B4LTHW43 | Low risk |
| Old Mutual - UK Mid Cap | UK All Companies | GB00B1XG7999 | Medium risk |
| PFS - TwentyFour Dynamic Bond | Sterling Strategic Bond | GB00B566LX69 | Low risk |
| Threadneedle - China Opportunities | China/Greater China | GB00B1PRW734 | High risk |
For reference the funds from last month that dropped out of the 80-20 Best of the Best list are listed below. Many of them remain in the Best funds by Sector selection:
| Name | Sector |
| 7IM - AAP Balanced | Mixed Investment 20%-60% Shares |
| 7IM - AAP Moderately Cautious | Mixed Investment 0%-35% Shares |
| 7IM - Balanced | Mixed Investment 20%-60% Shares |
| Artemis - European Opportunities | Europe Excluding UK |
| Baring - Eastern Trust | Asia Pacific Excluding Japan |
| BlackRock - Asia Special Situations | Asia Pacific Excluding Japan |
| Jupiter - European | Europe Excluding UK |
| Schroder - Monthly High Income | Sterling High Yield |
| UBS - Global Emerging Markets Equity | Global Emerging Markets |
What is interesting is that the new funds to join the Best of the Best Selection complement those that performed well last month, in particular those funds invested in Japan and UK equities. For example the Old Mutual UK Mid Cap fund was up over 5% last month alone. As a result the medium risk section of the selection now favours Japanese equities along with UK All Companies, UK Smaller Companies. Exposure to other equity markets, such as Europe and China, is gained through the high risk part of the selection reflecting the volatile nature of these markets right now.
Interestingly a UK index-linked fund makes an appearance in the high risk section. The last time this happened it was only fleeting as it dropped out the following month. The most likely reason for its momentum is that the recent bond market tantrum was caused by investors suddenly believing inflation (rather than deflation) was likely, which favours index-linked gilts so their values rallied. Index-linked gilts are a high risk play because of the way their returns can fluctuate. Yet it is ludicrous that most of the industry class them as low risk. That is why the 80-20 Investor algorithm looks at each fund's risk in isolation to determine it's true level of risk.
The Asset mix
If you analyse all the holdings across the new Best of the Best Selection it is now split:
- UK Equities 22%
- Global Fixed Interest 22%
- Japanese Equities 12%
- Asia Pacific Emerging Equities (including China) 8%
- Property (mostly shares) 8%
- European Equities 5%
- UK Corporate Fixed Interest (i.e UK bonds) 4%
The remainder is made up of other international equities.
80-20 Investor Best of the Best fund performance – since inception August 2014
To make the comparison I have assumed that an investor bought all of the 80-20 Best of the Best funds in equal measure and switched them every month. The chart shows the level of outperformance since we began tracking the 80-20 Investor Best of the Best selection back in August 2014. The 80-20 selection is up 14.52% (green line) versus 10.55% for the average managed fund (red line) and 8.87% for the FTSE 100 (black line).
