80-20 Investor Best of the Best Selection – August 2024 Update

Commentary

Of the 30 funds in July's BOTB selection 18 funds have retained their place after what was a tricky month for the BOTB. The BOTB outperformed its benchmark but not the average professionally managed multi-asset fund. It suggests that the asset mix hindered the BOTB's performance. The chart below shows how it was a month of two halves with the portfolio's exposure to US tech stocks hindering performance as the month progressed.

Obviously, the chart above only looks at the average across all of the funds within the BOTB. The top-performing funds in July's BOTB are highlighted in the table below and contain funds that had UK equity exposure, which benefited from the political stability in the UK. In addition, equity income funds, which are more defensively positioned than their growth orientated counterparts, and bonds funds (not shown) were among the best performers during a month where growth stocks (such as US tech stocks) faltered.

Fund	July 2024 % return
WS Morant Wright Nippon Yield	4.98
Ninety One UK Special Situations	4.24
Jupiter India	3.27
Schroder UK Smaller Companies	3.05
Artemis Global Income	2.49

At the other end of the scale, the biggest losers were US technology stocks and US stock market funds in general, as tech earnings disappointed. This is an unusual position that these funds find themselves in, having been consistent top performers in recent months, and raises questions over the future of the AI-theme. These were the biggest drags on the BOTB and are largely the reason the BOTB, as a whole, slumped in the second half of July as shown in the earlier chart. Unsurprisingly, 4 out of the 5 have lost their place in August's BOTB.

Fund	July 2024 % return
T. Rowe Price US Large Cap Growth Equity	-4.63
FTF Franklin US Opportunities	-6.35
L&G Global Technology Index Trust	-6.36
T. Rowe Price Global Technology Equity	-6.64
UBS US Growth	-6.76

In terms of August's asset mix the biggest change is the reduction in US equity exposure (falling from 29% to 16%) in favour of UK equities (which has risen from 12% to 24%). It's been a long time since we've seen such a dramatic reversal in the asset mix on the BOTB but it does reflect the sudden change in fortunes between stock markets on either side of the Atlantic. The BOTB's full asset mix is shown later in this article. Overall the total equity exposure increased from 66% to 68%, which is the highest level for some time.

Below I list this month's selection in full with the 18 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 Emerging Markets Equity	Global Emerging Markets	GB00B0WDH832	Medium risk
Artemis Global Income	Global Equity Income	GB00B5N99561	Medium risk
Artemis Monthly Distribution	Mixed Investment 20-60% Shares	GB00B6TK3R06	Lower risk
Artemis SmartGARP European Equity	Europe Excluding UK	GB00B2PLJD73	Medium risk
Artemis UK Select	UK All Companies	GB00B2PLJG05	Higher risk
Artemis UK Smaller Companies	UK Smaller Companies	GB00B2PLJL57	Higher risk
AXA Managed Income	Sterling Strategic Bond	GB00B7H1PG56	Lower risk
Fidelity Global Dividend	Global Equity Income	GB00B7778087	Medium risk
Invesco Global Smaller Companies (UK)	Global	GB00B3RS8K36	Higher risk
Invesco High Yield (UK)	Sterling High Yield	GB00B3RW7649	Lower risk
Invesco UK Opportunities (UK)	UK All Companies	GB00B1W7HM62	Medium risk
Jupiter Asian Income	Asia Pacific Excluding Japan	GB00BZ2YML94	Higher risk
Jupiter India	India/Indian Subcontinent	GB00B2NHJ040	Higher risk
L&G Global 100 Index Trust	Global	GB00B0CNH056	Medium risk
L&G Global Technology Index Trust	Technology & Technology Innovation	GB00B0CNH163	Higher risk
L&G Strategic Bond	Sterling Strategic Bond	GB00B1TWMW95	Lower risk
L&G UK Equity Income	UK Equity Income	GB00B6HBD759	Medium risk
Liontrust India	India/Indian Subcontinent	GB00B1L6DV51	Higher risk
Man GLG Absolute Value	Targeted Absolute Return	GB00BF1X8084	Lower risk
Man GLG High Yield Opportunities	Sterling High Yield	GB00BJK3W057	Lower risk
Ninety One Asia Pacific Franchise	Asia Pacific Excluding Japan	GB00B1XFJD49	Higher risk
Ninety One Global Strategic Equity	Global	GB00B1XFJ672	Medium risk
Ninety One UK Special Situations	UK All Companies	GB00B1XFJS91	Higher risk
Schroder High Yield Opportunities	Sterling High Yield	GB00B83RDY83	Lower risk
Schroder Strategic Credit	Sterling Strategic Bond	GB00BJZ2ZC09	Lower risk
Schroder Tellworth UK Dynamic Absolute Return	Targeted Absolute Return	GB00B3N74T57	Lower risk
Schroder UK Smaller Companies	UK Smaller Companies	GB00B76V7Z98	Higher risk
Thesis TM Tellworth UK Select	Targeted Absolute Return	GB00BNY7YM73	Lower risk
UBS S&P 500 Index	North America	GB00BMN91T34	Medium risk
WS Morant Wright Nippon Yield	Japan	GB00B42MKS95	Medium 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 Monthly Distribution	Mixed Investment 20-60% Shares	GB00B6TK3R06	Lower risk
AXA Managed Income	Sterling Strategic Bond	GB00B7H1PG56	Lower risk
Invesco High Yield (UK)	Sterling High Yield	GB00B3RW7649	Lower risk
L&G Strategic Bond	Sterling Strategic Bond	GB00B1TWMW95	Lower risk
Man GLG Absolute Value	Targeted Absolute Return	GB00BF1X8084	Lower risk
Man GLG High Yield Opportunities	Sterling High Yield	GB00BJK3W057	Lower risk
Schroder High Yield Opportunities	Sterling High Yield	GB00B83RDY83	Lower risk
Schroder Strategic Credit	Sterling Strategic Bond	GB00BJZ2ZC09	Lower risk
Schroder Tellworth UK Dynamic Absolute Return	Targeted Absolute Return	GB00B3N74T57	Lower risk
Thesis TM Tellworth UK Select	Targeted Absolute Return	GB00BNY7YM73	Lower risk
Allianz Emerging Markets Equity	Global Emerging Markets	GB00B0WDH832	Medium risk
Artemis Global Income	Global Equity Income	GB00B5N99561	Medium risk
Artemis SmartGARP European Equity	Europe Excluding UK	GB00B2PLJD73	Medium risk
Fidelity Global Dividend	Global Equity Income	GB00B7778087	Medium risk
Invesco UK Opportunities (UK)	UK All Companies	GB00B1W7HM62	Medium risk
L&G Global 100 Index Trust	Global	GB00B0CNH056	Medium risk
L&G UK Equity Income	UK Equity Income	GB00B6HBD759	Medium risk
Ninety One Global Strategic Equity	Global	GB00B1XFJ672	Medium risk
UBS S&P 500 Index	North America	GB00BMN91T34	Medium risk
WS Morant Wright Nippon Yield	Japan	GB00B42MKS95	Medium risk
Artemis UK Select	UK All Companies	GB00B2PLJG05	Higher risk
Artemis UK Smaller Companies	UK Smaller Companies	GB00B2PLJL57	Higher risk
Invesco Global Smaller Companies (UK)	Global	GB00B3RS8K36	Higher risk
Jupiter Asian Income	Asia Pacific Excluding Japan	GB00BZ2YML94	Higher risk
Jupiter India	India/Indian Subcontinent	GB00B2NHJ040	Higher risk
L&G Global Technology Index Trust	Technology & Technology Innovation	GB00B0CNH163	Higher risk
Liontrust India	India/Indian Subcontinent	GB00B1L6DV51	Higher risk
Ninety One Asia Pacific Franchise	Asia Pacific Excluding Japan	GB00B1XFJD49	Higher risk
Ninety One UK Special Situations	UK All Companies	GB00B1XFJS91	Higher risk
Schroder UK Smaller Companies	UK Smaller Companies	GB00B76V7Z98	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
abrdn Global Focused Equity	Global	GB00B6915J97	Medium risk
Artemis SmartGARP Global Emerging Markets Equity	Global Emerging Markets	GB00BW9HL132	Medium risk
Artemis SmartGARP Global Equity	Global	GB00B2PLJP95	Medium risk
Artemis US Select	North America	GB00BMMV5105	Medium risk
Aviva Inv Global Equity Income	Global Equity Income	GB0030441918	Medium risk
FTF Franklin US Opportunities	North America	GB00B7KCG406	Higher risk
L&G Asia Pacific Equity Income	Asia Pacific Excluding Japan	GB00B409KQ03	Higher risk
Man GLG Sterling Corporate Bond	Sterling Corporate Bond	GB00BNLYQX62	Lower risk
T. Rowe Price Global Focused Growth Equity	Global	GB00BD446774	Higher risk
T. Rowe Price Global Technology Equity	Technology & Technology Innovation	GB00BD446K01	Higher risk
T. Rowe Price US Large Cap Growth Equity	North America	GB00BD5FHW12	Medium risk
UBS US Growth	North America	GB00B7VHZX64	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 16% (19%)
• UK Fixed Interest 6% (5%)
• Alternatives 10% (10%) - includes absolute return strategies
• North American Equities 16% (29%)
• Emerging Market Equities 9% (9%)
• Asian Equities 6% (3%)
• European Equities 8% (8%)
• Japanese Equities 5% (5%)
• UK Equities 24% (12%)
• Cash 0% (0%)
• China Equities 0% (0%)
• Property Equities 0% (0%)
• Other International Equities 0% (0%)
• Commodities and Energy 0% (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.

 

 

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