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

Commentary

Of the 30 funds in November’s BOTB, 18 funds have retained their place in December’s selection which is not surprising given that the BOTB as a whole was up almost 4% during the month. The chart below illustrates that the BOTB (the blue line) performed broadly in line with the average professionally managed fund from the Mixed Investment 40-85% Shares sector (grey line). The green line represents the BOTB's benchmark that uses the respective sector averages for each fund in the BOTB, assuming the same asset mix. It is interesting to note that the BOTB underperformed its benchmark which was, unusually, down to the performance of the low risk funds within the collection. The BOTB’s low risk funds have had a focus on short duration bonds, which in recent months has boosted the BOTB's performance when bond markets were in freefall. In fact, the top-performing funds in October's BOTB were short-dated bond funds.