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

Commentary

Of the 30 funds in January's BOTB, 19 funds have retained their place in February's selection. The chart below shows the average performance of the BOTB during January (the green 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 blue line). You can see that the BOTB marginally underperformed its benchmark, but it was still a very strong month for returns, especially coming off the back of a robust December. So it's unsurprising that almost two-thirds of the funds have retained their place in the BOTB.

The above chart also shows how the selection has fared against the average professionally managed fund from the Mixed Investment 20-60% Shares sector and the Mixed Investment 40-85% Shares sector. The former is typically more cautious than the BOTB given its lower equity exposure while the latter tends to be more adventurous.