80-20 Investor Best of the Best Selection – August 2023 Update

Commentary

Of the 30 funds in July’s BOTB, 21 funds have retained their place in August's selection, which is higher than normal and reflects the selections overall strong performance during July. The chart below shows the average performance of the BOTB during July (the red 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 green line). You can see that the BOTB marginally underperformed its benchmark, while it outperformed the average cautious managed fund (purple line) and the average managed fund with up to 85% equity exposure (grey line) albeit marginally.

The top performing funds in July's BOTB are shown below and once again are those funds that typically have exposure to large cap US companies as well as Japanese equities.

Fund	July 2023 % return
Liontrust Global Technology	5.62
Ninety One UK Special Situations	4.55
AXA Framlington Global Technology	4.27
Man GLG Japan Core Alpha	3.4
T. Rowe Price US Large Cap Growth Equity	2.9

At the other end of the scale, defensively positioned global income funds along with bond funds and other low-risk alternatives had a more subdued month. These include two funds that are currently in my own £50k portfolio. However, only 2 funds produced a negative return during July and even then the losses were small. 

Fund	July 2023 % return
AXA US Short Duration High Yield Bond	0.83
IFSL Marlborough High Yield Fixed Interest	0.66
BNY Mellon Global Dynamic Bond	0.37
FP Carmignac Global Equity Compounders	0.17
Invesco Global Targeted Returns (UK)	-0.2
TB Evenlode Global Income	-0.35

So it is perhaps unsurprising that so many funds retained their place in the BOTB once again. In terms of asset mix there has been slight increases to US stocks (particularly via tech-focussed funds) as well as UK equities but at the expense of European, emerging market and Japanese equities. The selection's overall equity exposure has also dropped to 59% from 65%, which is the first drop for a while. Elsewhere, the portfolio's bond exposure remains almost the same. At the end of this article, you can find information on how the 80-20 Investor selection continues to outperform professional fund managers and the market since its launch nine years ago

Below I list this month's selection in full with the 21 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
abrdn High Yield Bond	Sterling High Yield	GB00B79RR984	Lower risk
Artemis SmartGARP European Equity	Europe Excluding UK	GB00B2PLJD73	Higher risk
AXA Framlington American Growth	North America	GB00B5LXGG05	Medium risk
AXA Framlington Global Technology	Technology & Technology Innovation	GB00B4W52V57	Higher risk
AXA Global High Yield	Sterling High Yield	GB00B29NGF01	Lower risk
AXA Global Short Duration Bonds	Sterling Strategic Bond	GB00BDFZQV30	Lower risk
AXA US Short Duration High Yield Bond	Global Bonds	GB00B59VLT43	Lower risk
Baillie Gifford Emerging Markets Bond	Global EM Bonds - Local Currency	GB00B39RMP13	Lower risk
BNY Mellon Global Dynamic Bond	Targeted Absolute Return	GB00B8K10865	Lower risk
CT European Select	Europe Excluding UK	GB0001529345	Higher risk
CT UK Growth and Income	UK All Companies	GB0001529675	Higher risk
Fidelity American	North America	GB00B8GPC429	Medium risk
FP Carmignac Global Equity Compounders	Global	GB00BMGLBK75	Medium risk
FTF Franklin US Opportunities	North America	GB00B7KCG406	Higher risk
FTF Templeton Global Leaders	Global	GB00B7K6LK38	Medium risk
IFSL Marlborough High Yield Fixed Interest	Sterling High Yield	GB00B03TN153	Lower risk
Invesco Emerging Markets ex China	Global Emerging Markets	GB00B3RW8X82	Higher risk
Invesco Global Equity Income	Global Equity Income	GB00B3FD1Z66	Medium risk
Invesco Global Targeted Returns	Targeted Absolute Return	GB00B8CHD050	Lower risk
LF Morant Wright Nippon Yield	Japan	GB00B42MKS95	Medium risk
Liontrust Global Alpha	Flexible Investment	GB0031190555	Medium risk
Liontrust Global Technology	Technology & Technology Innovation	GB00BYXZ5N79	Higher risk
M&G Short Dated Corporate Bond	Sterling Corporate Bond	GB0031110397	Lower risk
Man GLG Continental European Growth	Europe Excluding UK	GB00B0119487	Higher risk
Ninety One UK Special Situations	UK All Companies	GB00B1XFJS91	Higher risk
Royal London Global Equity Select	Global	GB00BF93W972	Medium risk
Royal London US Growth Trust	North America	GB0030038359	Medium risk
Schroder Strategic Credit	Sterling Strategic Bond	GB00BJZ2ZC09	Lower risk
T. Rowe Price US Large Cap Growth Equity	North America	GB00BD5FHW12	Higher risk
Troy Asset Management Ltd Trojan Global Equity	Global	GB00B0ZJ5S47	Medium risk

August 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
abrdn High Yield Bond	Sterling High Yield	GB00B79RR984	Lower risk
AXA Global High Yield	Sterling High Yield	GB00B29NGF01	Lower risk
AXA Global Short Duration Bonds	Sterling Strategic Bond	GB00BDFZQV30	Lower risk
AXA US Short Duration High Yield Bond	Global Bonds	GB00B59VLT43	Lower risk
Baillie Gifford Emerging Markets Bond	Global EM Bonds - Local Currency	GB00B39RMP13	Lower risk
BNY Mellon Global Dynamic Bond	Targeted Absolute Return	GB00B8K10865	Lower risk
IFSL Marlborough High Yield Fixed Interest	Sterling High Yield	GB00B03TN153	Lower risk
Invesco Global Targeted Returns	Targeted Absolute Return	GB00B8CHD050	Lower risk
M&G Short Dated Corporate Bond	Sterling Corporate Bond	GB0031110397	Lower risk
Schroder Strategic Credit	Sterling Strategic Bond	GB00BJZ2ZC09	Lower risk
AXA Framlington American Growth	North America	GB00B5LXGG05	Medium risk
Fidelity American	North America	GB00B8GPC429	Medium risk
FP Carmignac Global Equity Compounders	Global	GB00BMGLBK75	Medium risk
FTF Templeton Global Leaders	Global	GB00B7K6LK38	Medium risk
Invesco Global Equity Income	Global Equity Income	GB00B3FD1Z66	Medium risk
LF Morant Wright Nippon Yield	Japan	GB00B42MKS95	Medium risk
Liontrust Global Alpha	Flexible Investment	GB0031190555	Medium risk
Royal London Global Equity Select	Global	GB00BF93W972	Medium risk
Royal London US Growth Trust	North America	GB0030038359	Medium risk
Troy Asset Management Ltd Trojan Global Equity	Global	GB00B0ZJ5S47	Medium risk
Artemis SmartGARP European Equity	Europe Excluding UK	GB00B2PLJD73	Higher risk
AXA Framlington Global Technology	Technology & Technology Innovation	GB00B4W52V57	Higher risk
CT European Select	Europe Excluding UK	GB0001529345	Higher risk
CT UK Growth and Income	UK All Companies	GB0001529675	Higher risk
FTF Franklin US Opportunities	North America	GB00B7KCG406	Higher risk
Invesco Emerging Markets ex China	Global Emerging Markets	GB00B3RW8X82	Higher risk
Liontrust Global Technology	Technology & Technology Innovation	GB00BYXZ5N79	Higher risk
Man GLG Continental European Growth	Europe Excluding UK	GB00B0119487	Higher risk
Ninety One UK Special Situations	UK All Companies	GB00B1XFJS91	Higher risk
T. Rowe Price US Large Cap Growth Equity	North America	GB00BD5FHW12	Higher 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
EdenTree Responsible and Sustainable Global Equity	Global	GB0008449075	Medium risk
Fidelity Index Japan	Japan	GB00BHZK8872	Medium risk
Jupiter European	Europe Excluding UK	GB0006664683	Higher risk
Man GLG Japan Core Alpha	Japan	GB00B3F46Y30	Higher risk
Ninety One Global Total Return Credit	Sterling Strategic Bond	GB00BFM79K62	Lower risk
Royal London Global Sustainable Equity	Global	GB00BL6V0581	Medium risk
Schroder High Yield Opportunities	Sterling High Yield	GB00B83RDY83	Lower risk
TB Evenlode Global Income	Global Equity Income	GB00BF1QMV61	Medium risk
Vanguard FTSE Developed Europe ex-UK Equity Index	Europe Excluding UK	GB00B5B71H80	Higher 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 23% (22%)
• UK Fixed Interest 3% (4%)
• Alternatives 11% (5%) - includes absolute return strategies
• North American Equities 29% (26%)
• Emerging Market Equities 0% (3%)
• European Equities 10% (13%)
• Japanese Equities 4% (7%)
• UK Equities 9% (6%)
• Cash 4% (4%)
• China Equities 0% (0%)
• Asian Equities 0% (0%)
• Other international equities 7% (10%)
• Commodities and Energy % (0%)

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 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 BOTB has outperformed the average managed fund and the market.

 

 

All performance figures are net of fund charges. The material in any email, the MoneytotheMasses.com website, associated pages / channels / accounts and any other correspondence are for general information only and do not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation. See full Terms & Conditions, Privacy Policy and Disclaimer.

Neither MoneytotheMasses.com or 80-20 Investor nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Funds invest in shares, bonds, and other financial instruments and are by their nature speculative and can be volatile. You should never invest more than you can safely afford to lose. The value of your investment can go down as well as up so you may get back less than you originally invested. Tax rules can change and benefits depend on individual circumstances.
Information provided by MoneytotheMasses.com or 80-20 Investor is for general information only and not intended to be relied upon by readers in making (or not making) specific investment decisions.
Appropriate independent advice should be obtained before making any such decisions. Leadenhall Learning (owner of MoneytotheMasses.com or 80-20 Investor) and its staff do not accept liability for any loss suffered by readers as a result of any such decisions.
The tables and graphs are derived from data supplied by Trustnet. All Rights Reserved.