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

Commentary

Of the 30 funds in November BOTB selection 16 funds have retained their place which is more than last time, which perhaps isn't surprising given that the BOTB outperformed its benchmarks as shown below. One of the key themes of November was the outperformance of US stocks against other global stock markets, especially from emerging countries, following the US election result. As such, the BOTB's pivot away from emerging market stocks into US equities ahead of the US election boosted its November performance.

Digging deeper into the performance of the BOTB during November, the table below highlights the top 5 performing funds for the month. These were made up of those funds with the highest US equity exposure.

Fund	November 2024 % return
Vanguard US Equity Index	7.86
T. Rowe Price US Large Cap Growth Equity	7.56
UBS S&P 500 Index	7.11
Premier Miton Global Infrastructure Income	6.67
Vanguard FTSE Developed World ex-UK Equity Index	5.65

Conversely, only three funds fell in value during November. These were primarily concentrated in UK small-cap stocks, which were negatively affected by the anticipated impact of policies announced in the late October Autumn Budget.

Fund	November 2024 % return
abrdn High Yield Bond	0.19
AXA Framlington Biotech	0.05
Man High Yield Opportunities	-0.32
Ninety One UK Smaller Companies	-0.49
Artemis UK Smaller Companies	-0.91

In terms of December's asset mix, the most noticeable change is the introduction of Japanese equities (4%), which previously had been removed from the BOTB. Japanese equities benefited from the recent strength in the US dollar versus the yen, which made Japanese exports more competitive, boosting the appeal of Japanese companies. This increase has primarily come at the expense of UK Equities, which have reduced to 13% (from 16%). Meanwhile, North American equities have seen a modest increase to 26% (from 24%), continuing the trend from the previous month, buoyed by the 'Trump trade'. Overall there has been a slight increase in the total equity exposure to 66%. The BOTB's full asset mix is shown in the table at the foot of this article.

Below I list this month's selection in full with the 16 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
abrdn High Yield Bond	Sterling High Yield	GB0000938844	Lower risk
Artemis High Income	Sterling Strategic Bond	GB00B2PLJN71	Lower risk
Artemis SmartGARP UK Equity	UK All Companies	GB00B2PLJM64	Medium risk
AXA Framlington Fintech	Financials and Financial Innovation	GB00B5BHKC62	Higher risk
AXA Global High Yield	Sterling High Yield	GB00B29NGF01	Lower risk
Baillie Gifford High Yield Bond	Sterling High Yield	GB0030816606	Lower risk
Barclays Global Markets Balanced	Mixed Investment 20-60% Shares	GB00B4Z0MR31	Lower risk
Close Diversified Income Portfolio	Mixed Investment 20-60% Shares	GB00B708TJ43	Lower risk
CT High Yield Bond	Sterling High Yield	GB0008371014	Lower risk
Fidelity American	North America	GB00B8GPC429	Higher risk
Fidelity Global Dividend	Global Equity Income	GB00B7778087	Medium risk
Fidelity Index Pacific ex Japan	Asia Pacific Excluding Japan	GB00BHZK8G51	Higher risk
First Sentier Global Listed Infrastructure	Infrastructure	GB00B24HJL45	Medium risk
FSSA Indian Subcontinent All-Cap	India/Indian Subcontinent	GB00BDG1BM66	Higher risk
Invesco Global Ex UK Enhanced Index (UK)	Global	GB00BZ8GWQ44	Medium risk
Invesco Japanese Equity Advantage (UK)	Japan	GB00B3RS8478	Higher risk
Jupiter China	China/Greater China	GB00B1DTDX49	Higher risk
Jupiter Merian Global Equity	Global	GB00B1XG8F22	Medium risk
L&G Global Technology Index Trust	Technology & Technology Innovation	GB00B0CNH163	Higher risk
L&G Strategic Bond	Sterling Strategic Bond	GB00B1TWMW95	Lower risk
M&G Global Dividend	Global Equity Income	GB00B46J9127	Medium risk
Man High Yield Opportunities	Sterling High Yield	GB00BJK3W057	Lower risk
Ninety One UK Equity Income	UK All Companies	GB00BV9G3J51	Medium risk
Schroder Global Cities Real Estate	Property Other	GB00B1VPTY75	Higher risk
T. Rowe Price US Large Cap Growth Equity	North America	GB00BD5FHW12	Higher risk
Thesis TM Tellworth UK Select	Targeted Absolute Return	GB00BNY7YM73	Lower risk
Troy Asset Management Ltd Trojan Global Income	Global Equity Income	GB00BD82KP33	Medium risk
Vanguard FTSE Developed World ex-UK Equity Index	Global	GB00B59G4Q73	Medium risk
Vanguard LifeStrategy 80% Equity	Mixed Investment 40-85% Shares	GB00B4PQW151	Medium risk
Vanguard US Equity Index	North America	GB00B5B71Q71	Higher 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
abrdn High Yield Bond	Sterling High Yield	GB0000938844	Lower risk
Artemis High Income	Sterling Strategic Bond	GB00B2PLJN71	Lower risk
AXA Global High Yield	Sterling High Yield	GB00B29NGF01	Lower risk
Baillie Gifford High Yield Bond	Sterling High Yield	GB0030816606	Lower risk
Barclays Global Markets Balanced	Mixed Investment 20-60% Shares	GB00B4Z0MR31	Lower risk
Close Diversified Income Portfolio	Mixed Investment 20-60% Shares	GB00B708TJ43	Lower risk
CT High Yield Bond	Sterling High Yield	GB0008371014	Lower risk
L&G Strategic Bond	Sterling Strategic Bond	GB00B1TWMW95	Lower risk
Man High Yield Opportunities	Sterling High Yield	GB00BJK3W057	Lower risk
Thesis TM Tellworth UK Select	Targeted Absolute Return	GB00BNY7YM73	Lower risk
Artemis SmartGARP UK Equity	UK All Companies	GB00B2PLJM64	Medium risk
Fidelity Global Dividend	Global Equity Income	GB00B7778087	Medium risk
First Sentier Global Listed Infrastructure	Infrastructure	GB00B24HJL45	Medium risk
Invesco Global Ex UK Enhanced Index (UK)	Global	GB00BZ8GWQ44	Medium risk
Jupiter Merian Global Equity	Global	GB00B1XG8F22	Medium risk
M&G Global Dividend	Global Equity Income	GB00B46J9127	Medium risk
Ninety One UK Equity Income	UK All Companies	GB00BV9G3J51	Medium risk
Troy Asset Management Ltd Trojan Global Income	Global Equity Income	GB00BD82KP33	Medium risk
Vanguard FTSE Developed World ex-UK Equity Index	Global	GB00B59G4Q73	Medium risk
Vanguard LifeStrategy 80% Equity	Mixed Investment 40-85% Shares	GB00B4PQW151	Medium risk
AXA Framlington Fintech	Financials and Financial Innovation	GB00B5BHKC62	Higher risk
Fidelity American	North America	GB00B8GPC429	Higher risk
Fidelity Index Pacific ex Japan	Asia Pacific Excluding Japan	GB00BHZK8G51	Higher risk
FSSA Indian Subcontinent All-Cap	India/Indian Subcontinent	GB00BDG1BM66	Higher risk
Invesco Japanese Equity Advantage (UK)	Japan	GB00B3RS8478	Higher risk
Jupiter China	China/Greater China	GB00B1DTDX49	Higher risk
L&G Global Technology Index Trust	Technology & Technology Innovation	GB00B0CNH163	Higher risk
Schroder Global Cities Real Estate	Property Other	GB00B1VPTY75	Higher risk
T. Rowe Price US Large Cap Growth Equity	North America	GB00BD5FHW12	Higher risk
Vanguard US Equity Index	North America	GB00B5B71Q71	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 Real Estate Share	Property Other	GB00B7MR5W47	Higher risk
Artemis UK Smaller Companies	UK Smaller Companies	GB00B2PLJL57	Higher risk
Aviva Inv Global Equity Income	Global Equity Income	GB0030441918	Medium risk
AXA Framlington Biotech	Specialist	GB00B784NS11	Higher risk
Barclays Wealth Wealth Global Markets 5	Flexible Investment	GB00B4YPY060	Medium risk
Invesco High Yield (UK)	Sterling High Yield	GB00B3RW7649	Lower risk
Jupiter Asian Income	Asia Pacific Excluding Japan	GB00BZ2YML94	Higher risk
Jupiter Merian Asia Pacific	Asia Pacific Excluding Japan	GB00B1XG8C90	Higher risk
Man GLG Absolute Value	Targeted Absolute Return	GB00BF1X8084	Lower risk
Ninety One UK Smaller Companies	UK Smaller Companies	GB00B00LDP80	Higher risk
Premier Miton Global Infrastructure Income	Infrastructure	GB00BD3H9L21	Medium risk
Premier Miton UK Multi Cap Income	UK Equity Income	GB00B41NHD71	Medium risk
Schroder High Yield Opportunities	Sterling High Yield	GB00B83RDY83	Lower risk
UBS S&P 500 Index	North America	GB00BMN91T34	Medium 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 22% (21%)
• UK Fixed Interest 4% (4%)
• Alternatives 8% (11%) - includes absolute return strategies
• North American Equities 26% (24%)
• Emerging Market Equities 3% (4%)
• Asian Equities 3% (4%)
• European Equities 5% (5%)
• Japanese Equities 4% (0%)
• UK Equities 13% (16%)
• Cash 0% (0%)
• China Equities 3% (3%)
• Property Equities 3% (3%)
• Other International Equities 6% (5%)
• 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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