80-20 Investor Best of the Best Selection – August 2022 Update

Commentary

Of the 30 funds in July's BOTB, 15 funds have retained their place in August's selection. This follows on from the previous month when 19 funds retained their place. The chart below shows the average performance of the BOTB during July (the blue line) against a benchmark that is calculated using the respective sector averages for each fund in the BOTB and assuming the same asset mix (the red line). You can see that the BOTB underperformed its benchmark.

The chart also shows how the selection underperformed the average professionally managed fund from the Mixed Investment 40-85% Shares sector, which is typically more adventurous than the BOTB given its higher equity exposure. The BOTB's performance was hampered by its, albeit small, exposure to Chinese and Asian equities but more importantly its lack of exposure to US technology stocks which rallied 11% in July as the market began betting that the US Federal Reserve would become less aggressive with its interest rate hikes.