Commentary
Of the 30 funds in November's BOTB, 14 funds have retained their place in December'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. Following a strong October, the BOTB had a more muted November, marginally underperforming its benchmark. To give that further context a typical professionally managed multi-asset fund from the Mixed Investment 40-85% Shares sector made 0.13% in November.
The first table below shows the top performing funds within the BOTB for the month of November:
| Fund | November % return |
| Liontrust Global Technology | 5.46 |
| M&G Index-Linked Bond | 4.57 |
| Stewart Investors Worldw. Lead. Sust. | 4.09 |
| Royal London Global Sustainable Equity | 2.98 |
| AXA Global Distribution | 2.63 |
| Royal London Sustainable World Trust | 2.19 |
| Royal London Global Index Linked | 2.15 |
At the other end of the spectrum, the worst performers are shown below. Both tables reflect the impact of investor fear over Omicron with index-linked gilts outperforming while funds exposed to domestic equities and commodities underperforming (two of which I currently hold in my own £50k portfolio).
| Fund | November % return |
| Liontrust India | -2.34 |
| Fidelity UK Smaller Companies | -2.43 |
| Jupiter Global Financial Innovation | -2.6 |
| Fidelity Emerging Europe Middle East and Africa | -5.38 |
| Liontrust Russia | -7.4 |
This month's BOTB once again sees a reduction in its UK equity exposure in favour of US equities but also in favour of technology stocks and UK gilts. In addition, the selection's overall equity exposure has fallen slightly to 65%. The focus of the portfolio remains US equities and then European and UK equities. It's interesting to see there is once again a small direct exposure to Asian equities (including Japan) but exposure to Indian equities has reduced, while exposure to Russian equities has vanished (owing to the slump in commodities). However some direct exposure to commodities remains. The selection's exposure to property equity funds has increased as bond yields have tumbled. At the low-risk end of the selection, there remains a significant allocation to Targeted Absolute Return funds and mixed asset funds.
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 seven years ago.
Below I list this month's selection in full with the 14 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.
December'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 |
| ASI Europe ex UK Equity | Europe Excluding UK | GB00B0LG6N13 | Medium risk |
| ASI Global Smaller Companies | Global | GB00B7KVX245 | High risk |
| ASI Sterling Inflation-Linked Bond | UK Gilts | GB00BWK27319 | High risk |
| Baillie Gifford Diversified Growth | Targeted Absolute Return | GB00B3FD0Z91 | Low risk |
| BM Brooks Macdonald Defensive Capital | Targeted Absolute Return | GB00B61MR835 | Low risk |
| CFP Castlefield Real Return | Targeted Absolute Return | GB00B12V1482 | Low risk |
| EF Tellsons Endeavour | Mixed Investment 20-60% Shares | GB00BJ391H08 | Low risk |
| Fidelity American | North America | GB00B8GPC429 | High risk |
| Fidelity Global Property | Property Other | GB00B7K2NZ09 | Medium risk |
| Fidelity Index US | North America | GB00BJS8SH10 | Medium risk |
| FP Pictet Multi Asset Portfolio | Targeted Absolute Return | GB00BVYTTC41 | Low risk |
| IFSL Marlborough Global Bond | Global Bonds | GB0003474730 | Low risk |
| Jupiter European | Europe Excluding UK | GB0006664683 | Medium risk |
| LF Canlife Global Equity Income | Global Equity Income | GB00B5W34S70 | Medium risk |
| Liontrust Global Technology | Technology & Telecommunications | GB00BYXZ5N79 | High risk |
| Liontrust Sustainable Future Defensive Managed | Mixed Investment 20-60% Shares | GB00BMN90635 | Low risk |
| M&G Index-Linked Bond | UK Index Linked Gilts | GB0031111478 | High risk |
| Rathbone Global Opportunities Fund | Global | GB0030349095 | High risk |
| Royal London Global Sustainable Equity | Global | GB00BL6V0581 | Medium risk |
| Royal London Sustainable Leaders Trust | UK All Companies | GB00B7V23Z99 | Medium risk |
| Schroder Global Cities Real Estate | Property Other | GB00B1VPTY75 | Medium risk |
| Schroder Managed Wealth Portfolio | Mixed Investment 20-60% Shares | GB00B84YNB54 | Low risk |
| Stewart Investors Asia Pacific Leaders Sustainability | Specialist | GB0033874768 | High risk |
| Stewart Investors Indian Subcontinent Sustainability | India/Indian Subcontinent | GB00B1FXTG93 | High risk |
| Stewart Investors Worldw. Lead. Sust. | Global | GB0030978729 | Medium risk |
| SVS Sanlam North American Equity | North America | GB0007655698 | Medium risk |
| T. Rowe Price Global Technology Equity | Technology & Telecommunications | GB00BD446K01 | High risk |
| TB Guinness Global Energy | Commodity/Natural Resources | GB00B56FW078 | High risk |
| Vanguard LifeStrategy 20% Equity | Mixed Investment 0-35% Shares | GB00B4NXY349 | Low risk |
| VT Chelsea Managed Monthly Income | Mixed Investment 20-60% Shares | GB00BF0NMS52 | Low risk |
December's Best of the Best Selection - (grouped by risk)
Here is December'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 |
| Baillie Gifford Diversified Growth | Targeted Absolute Return | GB00B3FD0Z91 | Low risk |
| BM Brooks Macdonald Defensive Capital | Targeted Absolute Return | GB00B61MR835 | Low risk |
| CFP Castlefield Real Return | Targeted Absolute Return | GB00B12V1482 | Low risk |
| EF Tellsons Endeavour | Mixed Investment 20-60% Shares | GB00BJ391H08 | Low risk |
| FP Pictet Multi Asset Portfolio | Targeted Absolute Return | GB00BVYTTC41 | Low risk |
| IFSL Marlborough Global Bond | Global Bonds | GB0003474730 | Low risk |
| Liontrust Sustainable Future Defensive Managed | Mixed Investment 20-60% Shares | GB00BMN90635 | Low risk |
| Schroder Managed Wealth Portfolio | Mixed Investment 20-60% Shares | GB00B84YNB54 | Low risk |
| Vanguard LifeStrategy 20% Equity | Mixed Investment 0-35% Shares | GB00B4NXY349 | Low risk |
| VT Chelsea Managed Monthly Income | Mixed Investment 20-60% Shares | GB00BF0NMS52 | Low risk |
| ASI Europe ex UK Equity | Europe Excluding UK | GB00B0LG6N13 | Medium risk |
| Fidelity Global Property | Property Other | GB00B7K2NZ09 | Medium risk |
| Fidelity Index US | North America | GB00BJS8SH10 | Medium risk |
| Jupiter European | Europe Excluding UK | GB0006664683 | Medium risk |
| LF Canlife Global Equity Income | Global Equity Income | GB00B5W34S70 | Medium risk |
| Royal London Global Sustainable Equity | Global | GB00BL6V0581 | Medium risk |
| Royal London Sustainable Leaders Trust | UK All Companies | GB00B7V23Z99 | Medium risk |
| Schroder Global Cities Real Estate | Property Other | GB00B1VPTY75 | Medium risk |
| Stewart Investors Worldw. Lead. Sust. | Global | GB0030978729 | Medium risk |
| SVS Sanlam North American Equity | North America | GB0007655698 | Medium risk |
| ASI Global Smaller Companies | Global | GB00B7KVX245 | High risk |
| ASI Sterling Inflation-Linked Bond | UK Gilts | GB00BWK27319 | High risk |
| Fidelity American | North America | GB00B8GPC429 | High risk |
| Liontrust Global Technology | Technology & Telecommunications | GB00BYXZ5N79 | High risk |
| M&G Index-Linked Bond | UK Index Linked Gilts | GB0031111478 | High risk |
| Rathbone Global Opportunities Fund | Global | GB0030349095 | High risk |
| Stewart Investors Asia Pacific Leaders Sustainability | Specialist | GB0033874768 | High risk |
| Stewart Investors Indian Subcontinent Sustainability | India/Indian Subcontinent | GB00B1FXTG93 | High risk |
| T. Rowe Price Global Technology Equity | Technology & Telecommunications | GB00BD446K01 | High risk |
| TB Guinness Global Energy | Commodity/Natural Resources | GB00B56FW078 | 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 |
| AXA Framlington American Growth | North America | GB00B5LXGG05 | Medium risk |
| AXA Global Distribution | Mixed Investment 20-60% Shares | GB0008309063 | Low risk |
| BlackRock Natural Resources Growth & Income | Commodity/Natural Resource | GB00B6865B79 | High risk |
| Fidelity Emerging Europe Middle East and Africa | Specialist | GB00B87Z7808 | High risk |
| Fidelity UK Smaller Companies | UK Smaller Companies | GB00B7VNMB18 | High risk |
| Invesco High Yield (UK) | Sterling High Yield | GB00B3RW7649 | Low risk |
| Invesco UK Opportunities (UK) | UK All Companies | GB00B1W7HM62 | High risk |
| Jupiter Global Financial Innovation | Financials and Financial Innovation | GB00B551H564 | High risk |
| Liontrust India | India/Indian Subcontinent | GB00B1L6DV51 | High risk |
| Liontrust Russia | Specialist | GB00B86WB793 | High risk |
| Marlborough European Multi-Cap | Europe Excluding UK | GB0001719730 | High risk |
| Premier Miton Worldwide Opportunities | Flexible Investment | GB0031831133 | Medium risk |
| Royal London Global Index Linked | Global Bonds | GB00B772RM82 | Low risk |
| Royal London Sustainable Diversified Trust | Mixed Investment 20-60% Shares | GB00B844WJ68 | Low risk |
| Royal London Sustainable World Trust | Mixed Investment 40-85% Shares | GB00B882H241 | Medium risk |
| VT Redlands Multi-Asset Portfolio | Flexible Investment | GB00BDVK8839 | Low 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 10% (10%)
- Alternatives 18% (18%) - 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 22% (22%)
- European Equities 9% (7%)
- Chinese Equities 0% (0%)
- Japanese Equities 0% (0%)
- Property 8% (5%)
- UK Equities 6% (11%)
- Gilts 7% (4%)
- Cash 0% (0%)
- Asian / Emerging market equities 7% (9%)
- Other international equities 8% (9%)
- Commodities and Energy 5% (5%)
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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