Commentary
As two-thirds of this month's 80-20 Investor Best of the Best Selection retained their place from last month's shortlist the portfolio keeps its reduced equity exposure. Global bonds still account for the largest component of the portfolio and although the portfolio has a low direct exposure to equities the 'alternatives' listed will include exposure to equities but via derivatives etc.
The breakdown of the portfolio's equity exposure has changed from last month with European equities creeping back in at the expense of Asian equities. The key equity theme within the portfolio remains diversification with European, US and Japanese equities seeing a broadly equal weighting. Interestingly the UK equity exposure remains very low at around 5%. This is perhaps reflective of the market nervousness surrounding the impending EU referendum.
At the foot of this article you can see how the 80-20 Investor Portfolio has continued to outperform the professional fund managers as well as the market.
A total of 20 funds from May's 30 funds make it into June's selection. This is one of the largest retentions for some time. Below I list this month's selection in full with the 20 funds that regained their place in black while the new additions are in green. You will notice some familiar names among the new additions.
Just as last time, I have included the full list sorted alphabetically by name and then by risk category.
June'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)
| Fund Name | Sector | ISIN Code | Risk Level |
| AXA - Framlington Japan | Japan | GB0003500179 | High risk |
| AXA - Sterling Strategic Bond | Sterling Strategic Bond | GB00B0LLCW73 | Low risk |
| Barclays - Sterling Bond | Sterling Strategic Bond | GB00B72Y6K08 | Low risk |
| BlackRock - Global Property Securities Equity Tracker | Property | GB00B5BFJG71 | High risk |
| CF - Prudential Dynamic Focused 0-30 Portfolio | Mixed Investment 0%-35% Shares | GB00B5BNX690 | Low risk |
| CF Canlife - North American | North America | GB00B73N3278 | High risk |
| Fidelity - Asia Pacific Opportunities | Asia Pacific Excluding Japan | GB00BQ1SWL90 | High risk |
| Fidelity - Global Enhanced Income | Global Equity Income | GB00BD1NLL62 | Medium risk |
| Fidelity - Strategic Bond | Sterling Strategic Bond | GB00B469J896 | Low risk |
| First State - Global Listed Infrastructure | Global | GB00B24HJC53 | High risk |
| Fundsmith - Equity | Global | GB00B4Q5X527 | High risk |
| Invesco Perpetual - Global Targeted Returns | Targeted Absolute Return | GB00B8CHD613 | Low risk |
| JPM - Japan | Japan | GB0030879471 | High risk |
| Jupiter - Absolute Return | Targeted Absolute Return | GB00B5129B32 | Medium risk |
| Jupiter - UK Smaller Companies | UK Smaller Companies | GB0004911870 | Medium risk |
| L&G - Emerging Markets Government Bond (US$) Index | Global Emerging Market Bond | GB00B7MJV331 | Medium risk |
| L&G - Managed Monthly Income Trust | Sterling Corporate Bond | GB00B0CNHQ18 | Low risk |
| L&G - Sterling Corporate Bond Index | Sterling Corporate Bond | GB00B4M01C47 | Low risk |
| Man GLG - Continental European Growth | Europe Excluding UK | GB00B0119370 | Medium risk |
| Marlborough - European Multi-Cap | Europe Excluding UK | GB0001719730 | High risk |
| McInroy & Wood - Balanced | Mixed Investment 40%-85% Shares | GB00B7RRJ163 | Medium risk |
| Schroder - Global Real Estate Securities Income | Property | GB00BDD2DJ32 | High risk |
| Standard Life Investments - AAA Income | Sterling Corporate Bond | GB00B4LQY248 | Low risk |
| Stewart Investors - Worldwide Sustainability | Global | GB00B845Y045 | High risk |
| Threadneedle - Emerging Market Bond | Global Emerging Market Bond | GB00B817DW83 | Medium risk |
| Threadneedle - European Corporate Bond | Global Bonds | GB00B7MJ0253 | Medium risk |
| Threadneedle - European High Yield Bond | Global Bonds | GB00B6RRFW23 | Medium risk |
| Threadneedle - UK Social Bond | Sterling Corporate Bond | GB00BF233790 | Low risk |
| Vanguard - LifeStrategy 20% Equity | Mixed Investment 0%-35% Shares | GB00B4NXY349 | Low risk |
June's Best of the Best Selection - (grouped by risk)
Here is June's shortlist grouped by their risk category (funds unchanged from last month are in black while new additions are in green):
| Fund Name | Sector | ISIN Code | Risk Level |
| Barclays - Sterling Bond | Sterling Strategic Bond | GB00B72Y6K08 | Low risk |
| AXA - Sterling Strategic Bond | Sterling Strategic Bond | GB00B0LLCW73 | Low risk |
| Invesco Perpetual - Global Targeted Returns | Targeted Absolute Return | GB00B8CHD613 | Low risk |
| Threadneedle - UK Social Bond | Sterling Corporate Bond | GB00BF233790 | Low risk |
| CF - Prudential Dynamic Focused 0-30 Portfolio | Mixed Investment 0%-35% Shares | GB00B5BNX690 | Low risk |
| Standard Life Investments - AAA Income | Sterling Corporate Bond | GB00B4LQY248 | Low risk |
| L&G - Sterling Corporate Bond Index | Sterling Corporate Bond | GB00B4M01C47 | Low risk |
| Vanguard - LifeStrategy 20% Equity | Mixed Investment 0%-35% Shares | GB00B4NXY349 | Low risk |
| L&G - Managed Monthly Income Trust | Sterling Corporate Bond | GB00B0CNHQ18 | Low risk |
| Fidelity - Strategic Bond | Sterling Strategic Bond | GB00B469J896 | Low risk |
| Threadneedle - European Corporate Bond | Global Bonds | GB00B7MJ0253 | Medium risk |
| Threadneedle - European High Yield Bond | Global Bonds | GB00B6RRFW23 | Medium risk |
| McInroy & Wood - Balanced | Mixed Investment 40%-85% Shares | GB00B7RRJ163 | Medium risk |
| L&G - Emerging Markets Government Bond (US$) Index | Global Emerging Market Bond | GB00B7MJV331 | Medium risk |
| Fidelity - Global Enhanced Income | Global Equity Income | GB00BD1NLL62 | Medium risk |
| Jupiter - UK Smaller Companies | UK Smaller Companies | GB0004911870 | Medium risk |
| Threadneedle - Emerging Market Bond | Global Emerging Market Bond | GB00B817DW83 | Medium risk |
| Man GLG - Continental European Growth | Europe Excluding UK | GB00B0119370 | Medium risk |
| Jupiter - Absolute Return | Targeted Absolute Return | GB00B5129B32 | Medium risk |
| Fidelity - Asia Pacific Opportunities | Asia Pacific Excluding Japan | GB00BQ1SWL90 | High risk |
| AXA - Framlington Japan | Japan | GB0003500179 | High risk |
| CF Canlife - North American | North America | GB00B73N3278 | High risk |
| First State - Global Listed Infrastructure | Global | GB00B24HJC53 | High risk |
| Schroder - Global Real Estate Securities Income | Property | GB00BDD2DJ32 | High risk |
| Marlborough - European Multi-Cap | Europe Excluding UK | GB0001719730 | High risk |
| Fundsmith - Equity | Global | GB00B4Q5X527 | High risk |
| Stewart Investors - Worldwide Sustainability | Global | GB00B845Y045 | High risk |
| JPM - Japan | Japan | GB0030879471 | High risk |
| BlackRock - Global Property Securities Equity Tracker | Property | GB00B5BFJG71 | High 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 Best of the Best list are listed below. Many of them remain in the Best funds by Sector selection:
| Fund Name | Sector | ISIN Code | Risk Level |
| Aberdeen - European High Yield Bond | Sterling High Yield | GB00B5968F40 | Low risk |
| Baillie Gifford - Emerging Markets Bond | Global Emerging Market Bond | GB00B39RMP13 | Medium risk |
| BlackRock - NURS II Consensus 35 | Mixed Investment 0%-35% Shares | GB00B7W6H253 | Medium risk |
| Fidelity - Index Pacific ex Japan | Asia Pacific Excluding Japan | GB00BLT1YS69 | High risk |
| Henderson Inst - Overseas Bond | Global Bonds | GB0007673055 | Medium risk |
| L&G - All Stocks Gilt Index Trust | UK Gilts | GB00B8344798 | Low risk |
| Legg Mason - IF Japan Equity | Japan | GB0033507467 | High risk |
| MI - Chelverton UK Equity Growth | UK All Companies | GB00BP855B75 | Medium risk |
| Threadneedle - Global Bond | Global Bonds | GB00B8C2M701 | Medium risk |
| VT - De Lisle America | North America | GB00B3QF3G69 | High 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 21% (25%)
- Alternatives/Other 19% (18%)
- UK Corporate Fixed Interest (i.e UK bonds) 12% (12%)
- North American Equities 11% (12%)
- European Equities 11% (0%)
- Japanese Equities 9% (10%)
- Property 7% (4%)
- UK Equities 5% (5%)
- Cash 5% (4%)
- Asian equities 0% (6%)
- UK Gilts 0% (4%)
- Other international equities 0% (0%)
- Emerging markets 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 FTSE 100 (the black line) and 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 60-85% 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 portfolio has HUGELY outperformed the average managed fund and the market.
All performance figures are net of fund charges. The material in any email, the MonetotheMasses.com website, associated pages / channels / accounts and any other correspondence are for general information only and do not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation. See full Terms & Conditions and Privacy Policy
Neither MoneytotheMasses.com/80-20 Investor nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Funds invest in shares, bonds, and other financial instruments and are by their nature speculative and can be volatile. You should never invest more than you can safely afford to lose. The value of your investment can go down as well as up so you may get back less than you originally invested.
Information provided by MoneytotheMasses.com/80-20 Investor is for general information only and not intended to be relied upon by readers in making (or not making) specific investment decisions.
Appropriate independent advice should be obtained before making any such decisions. Leadenhall Learning (owner of MoneytotheMasses.com/80-20 Investor) and its staff do not accept liability for any loss suffered by readers as a result of any such decisions.
The tables and graphs are derived from data supplied by Trustnet. All rights Reserved.
