80-20 Investor Best of the Best Selection – January 2026 Update

Commentary

The BOTB selection finished 2025 in strong fashion, outperforming both of its benchmarks. The fact that the BOTB outperformed both benchmarks suggests that while the asset mix played a role, the individual fund choices within the BOTB were the biggest drivers of outperformance.

As such, 18 funds have retained their position in this month's BOTB. Digging deeper into the performance of individual funds, UK and European equities were again among the biggest positive contributors. Artemis SmartGARP European Equity was the standout performer once again, a fund which I hold in my own portfolio, alongside Artemis Global Income. Outside of the top 5 funds shown, emerging market equity funds and Asian equity funds enjoyed a strong month.

Fund	December 2025 % return
Artemis SmartGARP European Equity	4.38
Artemis SmartGARP UK Equity	4.22
Artemis Global Income	4.17
Schroder European Recovery	3.38
UBS UK Equity Income	2.56

At the other end of the scale technology stocks were once again among the laggards, but this time alongside funds focussed on US healthcare stocks. This is a pattern that can be seen in the latest 80-20 Investor Growth Heatmap.

Fund	December 2025 % return
L&G Global Technology Index Trust	-0.41
Fidelity Japan	-0.48
Liontrust US Opportunities	-0.55
Schroder Global Healthcare	-2.07
AXA Framlington Biotech	-4.99

In terms of asset mix, January's BOTB is much in line with December's, but with the introduction of some commodity exposure as a result of the recent momentum in that asset class.

UK Equities remain the largest single component of the equity portion of the BOTB; with geographical allocation still split fairly evenly across UK, North America, Asia, Emerging Markets, European and Japanese equities. The full asset breakdown can be found at the foot of this article.

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.

January'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 Emerging Markets Equity	Global Emerging Markets	GB0033228197	Higher risk
abrdn Strategic Bond	Sterling Strategic Bond	GB00BWK27X12	Lower risk
Artemis Global Income	Global Equity Income	GB00B5N99561	Medium risk
Artemis High Income	Sterling Strategic Bond	GB00B2PLJN71	Lower risk
Artemis SmartGARP European Equity	Europe Excluding UK	GB00B2PLJD73	Medium risk
Artemis SmartGARP Global Equity	Global	GB00B2PLJP95	Higher risk
Artemis SmartGARP UK Equity	UK All Companies	GB00B2PLJM64	Medium risk
Barings Eastern Trust	Asia Pacific Excluding Japan	GB00B2PSLG53	Higher risk
BlackRock Natural Resources	Commodity/Natural Resources	GB00B6865B79	Higher risk
BNY Mellon Real Return	Targeted Absolute Return	GB00B8GG4B61	Lower risk
Fidelity Asia	Asia Pacific Excluding Japan	GB00B6Y7NF43	Higher risk
Fidelity Emerging Markets	Global Emerging Markets	GB00B9SMK778	Higher risk
Fidelity Multi Asset Income	Mixed Investment 0-35% Shares	GB00BJ4L7S87	Lower risk
Invesco Asian (UK)	Asia Pacific Excluding Japan	GB00B1W7HW60	Higher risk
Invesco Global Emerging Markets (UK)	Global Emerging Markets	GB00B3RW7S64	Higher risk
Invesco High Yield (UK)	Sterling High Yield	GB00B3RW7649	Lower risk
Jupiter Merlin Conservative Select	Mixed Investment 0-35% Shares	GB00B8GDMB34	Lower risk
Jupiter Monthly Income Bond	Sterling Strategic Bond	GB00B1XG8187	Lower risk
L&G Global Technology Index Trust	Technology & Technology Innovation	GB00B0CNH163	Higher risk
M&G Recovery	UK All Companies	GB00B7759Y38	Medium risk
Man Japan Core Alpha	Japan	GB00B0119B50	Medium risk
Premier Miton Multi-Asset Growth & Income	Mixed Investment 40-85% Shares	GB00B78H4K93	Medium risk
Royal London Ethical Bond	Sterling Strategic Bond	GB00BJ4KSX76	Lower risk
Royal London Short Duration Credit	Sterling Strategic Bond	GB00BJ4KW800	Lower risk
Royal London Sterling Credit	Sterling Corporate Bond	GB00B8GJ8S05	Lower risk
Schroder Global Recovery	Global	GB00BYRJXL91	Medium risk
T. Rowe Price Emerging Markets Discovery Equity	Global Emerging Markets	GB00BJL36Z72	Higher risk
UBS UK Equity Income	UK Equity Income	GB00B4W58959	Medium risk
Vanguard FTSE UK Equity Income Index	UK Equity Income	GB00B59G4H82	Medium risk
WS Morant Wright Nippon Yield	Japan	GB00B42MKS95	Medium risk

January's Best of the Best Selection - (grouped by risk)

(funds unchanged from last month are in black while new additions are in green):

Name	Sector	ISIN Code	Risk
abrdn Strategic Bond	Sterling Strategic Bond	GB00BWK27X12	Lower risk
Artemis High Income	Sterling Strategic Bond	GB00B2PLJN71	Lower risk
BNY Mellon Real Return	Targeted Absolute Return	GB00B8GG4B61	Lower risk
Fidelity Multi Asset Income	Mixed Investment 0-35% Shares	GB00BJ4L7S87	Lower risk
Invesco High Yield (UK)	Sterling High Yield	GB00B3RW7649	Lower risk
Jupiter Merlin Conservative Select	Mixed Investment 0-35% Shares	GB00B8GDMB34	Lower risk
Jupiter Monthly Income Bond	Sterling Strategic Bond	GB00B1XG8187	Lower risk
Royal London Ethical Bond	Sterling Strategic Bond	GB00BJ4KSX76	Lower risk
Royal London Short Duration Credit	Sterling Strategic Bond	GB00BJ4KW800	Lower risk
Royal London Sterling Credit	Sterling Corporate Bond	GB00B8GJ8S05	Lower risk
Artemis Global Income	Global Equity Income	GB00B5N99561	Medium risk
Artemis SmartGARP European Equity	Europe Excluding UK	GB00B2PLJD73	Medium risk
Artemis SmartGARP UK Equity	UK All Companies	GB00B2PLJM64	Medium risk
M&G Recovery	UK All Companies	GB00B7759Y38	Medium risk
Man Japan Core Alpha	Japan	GB00B0119B50	Medium risk
Premier Miton Multi-Asset Growth & Income	Mixed Investment 40-85% Shares	GB00B78H4K93	Medium risk
Schroder Global Recovery	Global	GB00BYRJXL91	Medium risk
UBS UK Equity Income	UK Equity Income	GB00B4W58959	Medium risk
Vanguard FTSE UK Equity Income Index	UK Equity Income	GB00B59G4H82	Medium risk
WS Morant Wright Nippon Yield	Japan	GB00B42MKS95	Medium risk
abrdn Emerging Markets Equity	Global Emerging Markets	GB0033228197	Higher risk
Artemis SmartGARP Global Equity	Global	GB00B2PLJP95	Higher risk
Barings Eastern Trust	Asia Pacific Excluding Japan	GB00B2PSLG53	Higher risk
BlackRock Natural Resources	Commodity/Natural Resources	GB00B6865B79	Higher risk
Fidelity Asia	Asia Pacific Excluding Japan	GB00B6Y7NF43	Higher risk
Fidelity Emerging Markets	Global Emerging Markets	GB00B9SMK778	Higher risk
Invesco Asian (UK)	Asia Pacific Excluding Japan	GB00B1W7HW60	Higher risk
Invesco Global Emerging Markets (UK)	Global Emerging Markets	GB00B3RW7S64	Higher risk
L&G Global Technology Index Trust	Technology & Technology Innovation	GB00B0CNH163	Higher risk
T. Rowe Price Emerging Markets Discovery Equity	Global Emerging Markets	GB00BJL36Z72	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
Artemis Monthly Distribution	Mixed Investment 20-60% Shares	GB00B6TK3R06	Lower risk
AXA Framlington Biotech	Specialist	GB00B784NS11	Higher risk
AXA Sterling Corporate Bond	Sterling Corporate Bond	GB00B1Z48Z43	Lower risk
BNY Mellon Multi-Asset Diversified Return	Targeted Absolute Return	GB00B81C8395	Lower risk
Fidelity Japan	Japan	GB00B882N041	Medium risk
Liontrust US Opportunities	North America	GB00B7K9LQ88	Higher risk
Man Sterling Corporate Bond Fund	Sterling Corporate Bond	GB00BNLYQX62	Lower risk
Schroder European Recovery	Europe Excluding UK	GB0007221889	Medium risk
Schroder Global Healthcare	Healthcare	GB00B76V7Q08	Higher risk
Schroder Sterling Corporate Bond	Sterling Corporate Bond	GB0009379370	Lower risk
Schroder Strategic Bond	Sterling Strategic Bond	GB00B7FPS593	Lower risk
Vanguard Global Emerging Markets	Global Emerging Markets	GB00BZ82ZY13	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 19% (20%)
• UK Fixed Interest 4% (3%)
• Alternatives 8% (11%) - includes absolute return strategies
• North American Equities 13% (13%)
• Emerging Market Equities 9% (7%)
• Asian Equities 8% (10%)
• European Equities 9% (9%)
• Japanese Equities 7% (7%)
• UK Equities 14% (14%)
• Cash 0% (0%)
• China Equities 0% (0%)
• Property Equities 0% (0%)
• Other International Equities 6% (6%)
• Commodities and Energy 3% (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 and has doubled in value.

 

 

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