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

Commentary

Of the 30 funds in June's BOTB, 17 funds have retained their place in July's selection, which is the highest number for some time. The chart below shows the average performance of the BOTB during June (the red 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 green line). You can see that the BOTB marginally underperformed its benchmark, while it outperformed the average cautious managed fund (grey line) and the average managed fund with up to 85% equity exposure (purple line). 

The top performing funds in June BOTB are shown below and are those that typically have exposure to large cap US companies as well as Japanese equities.

Fund	June 2023 % return
MI Metropolis Value	2.96
Man GLG Japan Core	2.94
T. Rowe Price US Large Cap Growth Equity	2.34
Troy Asset Management Ltd Trojan Global Equity	2.23
Royal London Global Sustainable Equity	2.07

At the other end of the scale, European equity funds had a subdued June along with bond funds and other low-risk alternatives.

Fund	June 2023 % return
Invesco Global Targeted Returns (UK)	-0.56
CT European Select	-0.57
AXA Global Short Duration Bonds	-0.66
Thesis TM Tellworth UK Select	-0.95
Royal London Sustainable Leaders Trust	-1.17

With US tech stocks performing strongly of late it means US equities continue to be the dominant asset in the BOTB selection. In fact US equity exposure has increased to 26% at the expense of UK equities and European equities. UK equities now only account for 6% of assets which is a significant shift down. The lacklustre performance of UK equities has been a result of the market's increasing concern about recession in the UK. Japanese equity exposure has increased once again which reflects the increased momentum we've seen in recent months. The selection's overall equity exposure is 65%, so largely unchanged. Elsewhere, the portfolio's bond exposure remains almost the same. At the end of this article, you can find information on how the 80-20 Investor selection continues to outperform professional fund managers and the market since its launch almost nine years ago

Below I list this month's selection in full with the 17 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.

July'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 Platform	Sterling High Yield	GB00B79RR984	Lower risk
AXA Framlington American Growth	North America	GB00B5LXGG05	Medium risk
AXA Framlington Global Technology	Technology & Technology Innovation	GB00B4W52V57	Higher risk
AXA Global Short Duration Bonds	Sterling Strategic Bond	GB00BDFZQV30	Lower risk
AXA US Short Duration High Yield Bond	Global Bonds	GB00B59VLT43	Lower risk
Baillie Gifford Emerging Markets Bond	Global EM Bonds - Local Currency	GB00B39RMP13	Lower risk
BNY Mellon Global Dynamic Bond	Targeted Absolute Return	GB00B8K10865	Lower risk
CT European Select	Europe Excluding UK	GB0001529345	Higher risk
EdenTree Responsible and Sustainable Global Equity	Global	GB0008449075	Medium risk
Fidelity American	North America	GB00B8GPC429	Medium risk
Fidelity Index Japan	Japan	GB00BHZK8872	Medium risk
FP Carmignac Global Equity Compounders	Global	GB00BMGLBK75	Medium risk
FTF Franklin US Opportunities	North America	GB00B7KCG406	Higher risk
IFSL Marlborough High Yield Fixed Interest	Sterling High Yield	GB00B03TN153	Lower risk
Invesco Emerging Markets ex China	Global Emerging Markets	GB00B3RW8X82	Higher risk
Invesco Global Targeted Returns	Targeted Absolute Return	GB00B8CHD050	Lower risk
Jupiter European	Europe Excluding UK	GB0006664683	Higher risk
Liontrust Global Alpha	Flexible Investment	GB0031190555	Medium risk
Liontrust Global Technology	Technology & Technology Innovation	GB00BYXZ5N79	Higher risk
Man GLG Japan Core Alpha	Japan	GB00B3F46Y30	Higher risk
Ninety One Global Total Return Credit	Sterling Strategic Bond	GB00BFM79K62	Lower risk
Ninety One UK Special Situations	UK All Companies	GB00B1XFJS91	Higher risk
Royal London Global Equity Select	Global	GB00BF93W972	Medium risk
Royal London Global Sustainable Equity	Global	GB00BL6V0581	Medium risk
Schroder High Yield Opportunities	Sterling High Yield	GB00B83RDY83	Lower risk
Schroder Strategic Credit	Sterling Strategic Bond	GB00BJZ2ZC09	Lower risk
T. Rowe Price US Large Cap Growth Equity	North America	GB00BD5FHW12	Higher risk
TB Evenlode Global Income	Global Equity Income	GB00BF1QMV61	Medium risk
Troy Asset Management Ltd Trojan Global Equity	Global	GB00B0ZJ5S47	Medium risk
Vanguard FTSE Developed Europe ex-UK Equity Index	Europe Excluding UK	GB00B5B71H80	Higher risk

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

Here is July'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 Platform	Sterling High Yield	GB00B79RR984	Lower risk
AXA Global Short Duration Bonds	Sterling Strategic Bond	GB00BDFZQV30	Lower risk
AXA US Short Duration High Yield Bond	Global Bonds	GB00B59VLT43	Lower risk
Baillie Gifford Emerging Markets Bond	Global EM Bonds - Local Currency	GB00B39RMP13	Lower risk
BNY Mellon Global Dynamic Bond	Targeted Absolute Return	GB00B8K10865	Lower risk
IFSL Marlborough High Yield Fixed Interest	Sterling High Yield	GB00B03TN153	Lower risk
Invesco Global Targeted Returns	Targeted Absolute Return	GB00B8CHD050	Lower risk
Ninety One Global Total Return Credit	Sterling Strategic Bond	GB00BFM79K62	Lower risk
Schroder High Yield Opportunities	Sterling High Yield	GB00B83RDY83	Lower risk
Schroder Strategic Credit	Sterling Strategic Bond	GB00BJZ2ZC09	Lower risk
AXA Framlington American Growth	North America	GB00B5LXGG05	Medium risk
EdenTree Responsible and Sustainable Global Equity	Global	GB0008449075	Medium risk
Fidelity American	North America	GB00B8GPC429	Medium risk
Fidelity Index Japan	Japan	GB00BHZK8872	Medium risk
FP Carmignac Global Equity Compounders	Global	GB00BMGLBK75	Medium risk
Liontrust Global Alpha	Flexible Investment	GB0031190555	Medium risk
Royal London Global Equity Select	Global	GB00BF93W972	Medium risk
Royal London Global Sustainable Equity	Global	GB00BL6V0581	Medium risk
TB Evenlode Global Income	Global Equity Income	GB00BF1QMV61	Medium risk
Troy Asset Management Ltd Trojan Global Equity	Global	GB00B0ZJ5S47	Medium risk
AXA Framlington Global Technology	Technology & Technology Innovation	GB00B4W52V57	Higher risk
CT European Select	Europe Excluding UK	GB0001529345	Higher risk
FTF Franklin US Opportunities	North America	GB00B7KCG406	Higher risk
Invesco Emerging Markets ex China	Global Emerging Markets	GB00B3RW8X82	Higher risk
Jupiter European	Europe Excluding UK	GB0006664683	Higher risk
Liontrust Global Technology	Technology & Technology Innovation	GB00BYXZ5N79	Higher risk
Man GLG Japan Core Alpha	Japan	GB00B3F46Y30	Higher risk
Ninety One UK Special Situations	UK All Companies	GB00B1XFJS91	Higher risk
T. Rowe Price US Large Cap Growth Equity	North America	GB00BD5FHW12	Higher risk
Vanguard FTSE Developed Europe ex-UK Equity Index	Europe Excluding UK	GB00B5B71H80	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 Strategic Assets	Flexible Investment	GB00B3VDD431	Medium risk
Aviva Inv Global Equity Income	Global Equity Income	GB0030441918	Medium risk
BNY Mellon Multi-Asset Balanced	Mixed Investment 40-85% Shares	GB00B8K9JZ06	Medium risk
Close Sustainable Select Fixed Income	Sterling Strategic Bond	GB00BD6DSC14	Lower risk
CT UK	UK All Companies	GB0001529782	Higher risk
Fidelity European	Europe Excluding UK	GB00BFRT3504	Medium risk
Fundsmith Equity	Global	GB00B4Q5X527	Medium risk
Invesco Global Focus (UK)	Global	GB00B3KJYG12	Higher risk
M&G Short Dated Corporate Bond	Sterling Corporate Bond	GB0031110397	Lower risk
MI Metropolis Value	Global	GB00B3LDLX86	Higher risk
Royal London Sustainable Leaders Trust	UK All Companies	GB00B7V23Z99	Higher risk
Schroder MM Diversity	Mixed Investment 20-60% Shares	GB00B60CZD52	Lower risk
Thesis TM Tellworth UK Select	Targeted Absolute Return	GB00BNY7YM73	Lower 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% (3%)
• Alternatives 5% (3%) - includes absolute return strategies
• North American Equities 26% (21%)
• Emerging Market Equities 3% (0%)
• European Equities 13% (16%)
• Japanese Equities 7% (4%)
• UK Equities 6% (18%)
• Cash 4% (7%)
• China Equities 0% (0%)
• Asian Equities 0% (0%)
• Other international equities 10% (7%)
• 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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