80-20 Investor Best of the Best Selection – June 2018 Update

May saw stocks markets regain their swagger and for UK investors there was the double boost of the plummeting pound helping the FTSE 100 hit new all-time highs while at the same amplifying the returns on their overseas holdings, most notably in the US. Riskier assets once again outperformed lower risk assets (such as bonds) with the strongest returns being experienced in technology stocks, US equities and Chinese equities. From last month's selection, Baillie Gifford Global Discovery produced an astounding 13.53% in May alone! Other stand-out performers include AXA Framlington American Growth (up 6.86%). Both funds are in my own £50,000 portfolio. Down the other end of the spectrum, bond market weakness hampered bond funds and their returns ranged from -0.2% to -2%. Both my portfolio and the BOTB benefited from diversifying their low-risk portion away from bonds and into alternative assets such as property. The BOTB was up by an average of 2.72% in May versus 1.84% for the equivalent average professionally managed fund.