80-20 Investor Best of the Best Selection – August 2021 Update

Commentary

Of the 30 funds in July's BOTB, 16 funds have retained their place in August's selection. The chart below shows the performance of the BOTB against a benchmark that is calculated using the respective sector averages for each fund in the BOTB and assuming the same asset mix. The BOTB also outperformed the sector average of comparable professionally managed multi-asset funds (which made 0.36%)

You can see how the BOTB selection struggled during the mid-point of the month before rallying into the close. The table below shows the top performers within the BOTB for the month of July and it's pleasing to see three of them are in my own £50k portfolio.

Fund	% July return
Liontrust India	3.8
Fidelity Global Property	3.34
Marlborough European Multi-Cap	3.29
BMO North American Equity	2.38
Schroder UK Dynamic Smaller Companies	2.03
Fidelity UK Smaller Companies	1.86

At the other end of the scale the laggard was Marlborough Far East Growth which fell 5.47%. However, this was reflective of the widespread fall in Asian markets in July and believe it or not the fund still outperformed its peer-group average for the month.

Looking at the new BOTB, the overall equity exposure of the BOTB has risen to 65%, up from 61%, which is the highest for some time. The focus of the portfolio remains US, UK and European equities, with increased exposure to these areas, while having almost no direct exposure to Asian equities (including Japan). Once again we see growth stock exposure creeping in and increased exposure to property equity funds after their continued strong performance. At the low-risk end of the selection, there has been an increased allocation to Targeted Absolute Return funds as a result of the continued volatility in bond markets.

At the foot of this article, you can see how the 80-20 Investor selection continues to outperform the professional fund managers as well as the market since its launch almost seven years ago.

Below I list this month's selection in full with the 16 funds that regained their place in black while the new additions are in green. As usual, I have included the full list sorted alphabetically by name and then by risk category.

August's Best of the Best Selection - (A-Z by fund name)

(funds unchanged from last month are in black while new additions are in green)

Name	Sector	ISIN Code	Risk
Allianz Continental European	Europe Excluding UK	GB00B3Q8YX99	High risk
Artemis High Income	Sterling Strategic Bond	GB00B2PLJN71	Low risk
ASI Global Real Estate Share	Property Other	GB00B7MR5W47	Medium risk
ASI UK Real Estate Share	Property Other	GB00B0XWNM59	High risk
Barclays Multi-Asset Cautious	Mixed Investment 0-35% Shares	GB00BD93Z723	Low risk
BM Brooks Macdonald Defensive Capital	Targeted Absolute Return	GB00B61MR835	Low risk
CFP Castlefield Real Return	Targeted Absolute Return	GB00B12V1482	Low risk
ES R&M UK Equity Smaller Companies	UK Smaller Companies	GB00B1DSZS09	Medium risk
Fidelity Emerging Europe Middle East and Africa	Specialist	GB00B87Z7808	High risk
Fidelity Global Property	Property Other	GB00B7K2NZ09	Medium risk
Fidelity UK Smaller Companies	UK Smaller Companies	GB00B7VNMB18	High risk
FP Pictet Multi Asset Portfolio	Targeted Absolute Return	GB00BVYTTC41	Low risk
Franklin UK Smaller Companies	UK Smaller Companies	GB00B7FFF708	High risk
Fundsmith Equity	Global	GB00B4Q5X527	Medium risk
Invesco High Yield (UK)	Sterling High Yield	GB00B3RW7649	Low risk
Liontrust India	Specialist	GB00B1L6DV51	High risk
Marlborough European Multi-Cap	Europe Excluding UK	GB0001719730	High risk
MI Chelverton UK Equity Income	UK Equity Income	GB00B1Y9J570	Medium risk
Ninety One American Franchise	North America	GB00B1XFJ342	Medium risk
Premier Miton Defensive Growth	Targeted Absolute Return	GB00B832BD89	Low risk
Premier Miton Diversified Income	Mixed Investment 20-60% Shares	GB00BYPDV970	Low risk
Premier Miton Worldwide Opportunities	Flexible Investment	GB0031831133	Medium risk
Schroder UK Dynamic Absolute Return	Targeted Absolute Return	GB00B3N74T57	Low risk
Schroder UK Dynamic Smaller Companies	UK Smaller Companies	GB0007220360	High risk
Slater Recovery	UK All Companies	GB0031554248	Medium risk
SVS Sanlam North American Equity	North America	GB0007655698	Medium risk
T. Bailey Dynamic	Mixed Investment 20-60% Shares	GB00B1385S07	Low risk
TB Saracen Global Income & Growth	Global Equity Income	GB00B5B35X02	High risk
Troy Asset Management Ltd Trojan Global Equity	Global	GB00B0ZJ5S47	Medium risk
VT De Lisle America	North America	GB00B3QF3G69	High risk

August's Best of the Best Selection - (grouped by risk)

Here is August's shortlist grouped by their risk category (funds unchanged from last month are in black while new additions are in green):

Name	Sector	ISIN Code	Risk
Artemis High Income	Sterling Strategic Bond	GB00B2PLJN71	Low risk
Barclays Multi-Asset Cautious	Mixed Investment 0-35% Shares	GB00BD93Z723	Low risk
BM Brooks Macdonald Defensive Capital	Targeted Absolute Return	GB00B61MR835	Low risk
CFP Castlefield Real Return	Targeted Absolute Return	GB00B12V1482	Low risk
FP Pictet Multi Asset Portfolio	Targeted Absolute Return	GB00BVYTTC41	Low risk
Invesco High Yield (UK)	Sterling High Yield	GB00B3RW7649	Low risk
Premier Miton Defensive Growth	Targeted Absolute Return	GB00B832BD89	Low risk
Premier Miton Diversified Income	Mixed Investment 20-60% Shares	GB00BYPDV970	Low risk
Schroder UK Dynamic Absolute Return	Targeted Absolute Return	GB00B3N74T57	Low risk
T. Bailey Dynamic	Mixed Investment 20-60% Shares	GB00B1385S07	Low risk
ASI Global Real Estate Share	Property Other	GB00B7MR5W47	Medium risk
ES R&M UK Equity Smaller Companies	UK Smaller Companies	GB00B1DSZS09	Medium risk
Fidelity Global Property	Property Other	GB00B7K2NZ09	Medium risk
Fundsmith Equity	Global	GB00B4Q5X527	Medium risk
MI Chelverton UK Equity Income	UK Equity Income	GB00B1Y9J570	Medium risk
Ninety One American Franchise	North America	GB00B1XFJ342	Medium risk
Premier Miton Worldwide Opportunities	Flexible Investment	GB0031831133	Medium risk
Slater Recovery	UK All Companies	GB0031554248	Medium risk
SVS Sanlam North American Equity	North America	GB0007655698	Medium risk
Troy Asset Management Ltd Trojan Global Equity	Global	GB00B0ZJ5S47	Medium risk
Allianz Continental European	Europe Excluding UK	GB00B3Q8YX99	High risk
ASI UK Real Estate Share	Property Other	GB00B0XWNM59	High risk
Fidelity Emerging Europe Middle East and Africa	Specialist	GB00B87Z7808	High risk
Fidelity UK Smaller Companies	UK Smaller Companies	GB00B7VNMB18	High risk
Franklin UK Smaller Companies	UK Smaller Companies	GB00B7FFF708	High risk
Liontrust India	Specialist	GB00B1L6DV51	High risk
Marlborough European Multi-Cap	Europe Excluding UK	GB0001719730	High risk
Schroder UK Dynamic Smaller Companies	UK Smaller Companies	GB0007220360	High risk
TB Saracen Global Income & Growth	Global Equity Income	GB00B5B35X02	High risk
VT De Lisle America	North America	GB00B3QF3G69	High risk

The funds that dropped out of the Best of the Best Selection

For reference, the funds from last month that dropped out of the 80-20 Investor Best of the Best list are listed below:

Name	Sector	ISIN Code	Risk
Artemis Global Equity	Global	GB00B2PLJP95	Medium risk
Aviva Inv UK Smaller Companies	UK Smaller Companies	GB0004457312	Medium risk
AXA Framlington Managed Income	Sterling Strategic Bond	GB00B7H1PG56	Low risk
AXA Framlington UK Smaller Companies	UK Smaller Companies	GB00B7MMLM18	High risk
BMO North American Equity	North America	GB0030281405	Medium risk
FP Apollo Multi Asset Balanced	Mixed Investment 20-60% Shares	GB00B3FPF276	Low risk
FP Octopus UK Multi Cap Income	UK Equity Income	GB00BG47Q333	Medium risk
JPM Natural Resources	Specialist	GB0031835118	High risk
Marlborough Far East Growth	Asia Pacific Excluding Japan	GB00B0NVCN62	Medium risk
Marlborough Technology	Technology & Telecommunications Retai	GB0032832841	High risk
Schroder High Yield Opportunities	Sterling High Yield	GB00B83RDY83	Low risk
Schroder QEP Global Active Value	Global	GB00B76V8G74	Medium risk
Schroder Small Cap Discovery	Specialist	GB00B5ZS9V71	High risk
UBS US Equity	North America	GB00B7V68L26	Medium risk

The Asset mix

The current asset mix of the new Best of the Best Selection is shown below with last month's figures in brackets:

• Global Fixed Interest 8% (8%)
• Alternatives 24% (21%) - includes absolute return strategies & some bond exposure
• UK Corporate Fixed Interest (i.e UK bonds) 0% (0%)
• Emerging Market Fixed Income 0% (0%)
• North American Equities 13% (13%)
• European Equities 7% (4%)
• Chinese Equities 0% (0%)
• Japanese Equities 0% (0%)
• Property 8% (4%)
• UK Equities 21% (22%)
• Gilts 0% (0%)
• Cash 3% (4%)
• Asian / Emerging market equities 3% (10%)
• Other international equities 13% (8%)
• Commodities and Energy 0% (6%)

80-20 Investor's outperformance continues

As you know the Best of the Best Selection is the shortlist of the best funds highlighted by our 80-20 Investor algorithm split into high, medium and low-risk categories. This shortlist is updated at the start of every month.

The green line in the chart below (click to enlarge) shows how a portfolio would have performed since inception (in August 2014) if it had been split equally between the Best of the Best Selection funds and then switched each month when each new shortlist was published. I have also charted the performance against that of a FTSE 100 tracker fund (the black line) and the average cautious managed fund (blue line) and the average managed fund with up to 85% equity exposure (red line). In reality, the 80-20 Investor's asset allocation typically lies between these two as it usually has 40-60% exposure to equities at any one time. So they provide a good comparison of how fund managers with a similar remit have fared over the same period.

As you can see, since launch in August 2014 the 80-20 Investor portfolio has outperformed the average managed fund and the market.

 

 

 

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