Commentary
June's BOTB looks very familiar to May's with 21 funds the same. Again the message is consistency. It again demonstrates the resilience of the funds that made the BOTB last month. The average return from the BOTB was 3.63% but there were many notable winners. That is quite an impressive return when you consider that the portfolio only had a 37% exposure to equities during a month where stock markets continued higher. Comparable professionally managed funds on average returned 2.63% but with as much as 60% equity exposure. Yet again, BOTB regulars such as Baillie Gifford Positive Return produced some staggering returns.
| Name | May performance % |
| Morgan Stanley US Advantage | 13.13 |
| Liontrust Global Technology | 10.34 |
| T. Rowe Price Global Technology Equity | 9.68 |
| Baillie Gifford Positive Change | 8.99 |
| Baillie Gifford Long Term Global Growth Investment | 8.8 |
At the other end of the spectrum, only five funds didn't make a profit and these were focused on government bonds and Chinese equities. However the average loss was only 0.37%
The BOTB asset mix has remained almost the same as last month, but equity exposure has now increased to 42%. Most of this is via US equities and bonds but there is now some exposure to Japanese equities. UK equities continue to remain almost absent which is a reflection of the fact that the UK stock market continues to lag its peers.
At the foot of this article, you can see how the 80-20 Investor selection continues to outperform the professional fund managers as well as the market since its launch over five years ago.
Below I list this month's selection in full with the 21 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.
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)
| Name | Sector | ISIN Code | Risk |
| Allianz Gilt Yield | UK Gilts | GB0031383283 | Medium risk |
| Allianz Strategic Bond | Sterling Strategic Bond | GB00B06T9362 | Low risk |
| ASI (AAM) Sterling Government Bond | UK Gilts | GB00BWK26Q79 | Low risk |
| ASI AAA Bond | Sterling Corporate Bond | GB00B3W48X95 | Low risk |
| ASI UK Government Bond | UK Gilts | GB00B6WZXS38 | Medium risk |
| AXA Framlington Biotech | Specialist | GB00B784NS11 | High risk |
| AXA Framlington Global Technology | Technology & Telecommunications | GB00B4W52V57 | High risk |
| AXA Sterling Strategic Bond | Sterling Strategic Bond | GB00B02Y6L20 | Low risk |
| Baillie Gifford China | China/Greater China | GB00B39RMM81 | High risk |
| Baillie Gifford European | Europe Excluding UK | GB0006058258 | High risk |
| Baillie Gifford Long Term Global Growth Investment | Global | GB00BD5Z0Z54 | High risk |
| Baillie Gifford Positive Change | Global | GB00BYVGKV59 | High risk |
| BlackRock European Absolute Alpha | Targeted Absolute Return | GB00B4Y62W78 | Low risk |
| BNY Mellon International Bond | Global Bonds | GB0006779655 | Medium risk |
| JPM Global Macro | Targeted Absolute Return | GB00B09RGL45 | Low risk |
| JPM Japan | Japan | GB00B1XMTP77 | Medium risk |
| Kames UK Equity Absolute Return | Targeted Absolute Return | GB00B504CH73 | Low risk |
| LF Canlife Global Macro Bond | Global Bonds | GB00B4LW2X97 | Medium risk |
| LF Canlife UK Government Bond | UK Gilts | GB00BLDYKJ43 | Medium risk |
| LF Miton UK Smaller Companies | UK Smaller Companies | GB00B818N094 | High risk |
| Liontrust Global Technology | Technology & Telecommunications | GB00BYXZ5N79 | High risk |
| Merian Global Strategic Bond | Sterling Strategic Bond | GB00B1XG7L17 | Low risk |
| Morgan Stanley US Advantage | North America | GB00BZ4CG750 | High risk |
| Royal London Global Index Linked | Global Bonds | GB00B772RM82 | Low risk |
| Royal London UK Government Bond | UK Gilts | GB00B881TW52 | Medium risk |
| Schroder Global Healthcare | Global | GB00B76V7Q08 | Medium risk |
| T. Rowe Price Dynamic Global Bond | Global Bonds | GB00BD0NLR34 | Low risk |
| T. Rowe Price Global Technology Equity | Technology & Telecommunications | GB00BD446K01 | High risk |
| Threadneedle Global Bond | Global Bonds | GB0001533685 | Medium risk |
| Troy Asset Management Ltd Trojan Ethical | Flexible Investment | GB00BJP0XX17 | Medium 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):
| Name | Sector | ISIN Code | Risk |
| Allianz Strategic Bond | Sterling Strategic Bond | GB00B06T9362 | Low risk |
| ASI (AAM) Sterling Government Bond | UK Gilts | GB00BWK26Q79 | Low risk |
| ASI AAA Bond | Sterling Corporate Bond | GB00B3W48X95 | Low risk |
| AXA Sterling Strategic Bond | Sterling Strategic Bond | GB00B02Y6L20 | Low risk |
| BlackRock European Absolute Alpha | Targeted Absolute Return | GB00B4Y62W78 | Low risk |
| JPM Global Macro | Targeted Absolute Return | GB00B09RGL45 | Low risk |
| Kames UK Equity Absolute Return | Targeted Absolute Return | GB00B504CH73 | Low risk |
| Merian Global Strategic Bond | Sterling Strategic Bond | GB00B1XG7L17 | Low risk |
| Royal London Global Index Linked | Global Bonds | GB00B772RM82 | Low risk |
| T. Rowe Price Dynamic Global Bond | Global Bonds | GB00BD0NLR34 | Low risk |
| Allianz Gilt Yield | UK Gilts | GB0031383283 | Medium risk |
| ASI UK Government Bond | UK Gilts | GB00B6WZXS38 | Medium risk |
| BNY Mellon International Bond | Global Bonds | GB0006779655 | Medium risk |
| JPM Japan | Japan | GB00B1XMTP77 | Medium risk |
| LF Canlife Global Macro Bond | Global Bonds | GB00B4LW2X97 | Medium risk |
| LF Canlife UK Government Bond | UK Gilts | GB00BLDYKJ43 | Medium risk |
| Royal London UK Government Bond | UK Gilts | GB00B881TW52 | Medium risk |
| Schroder Global Healthcare | Global | GB00B76V7Q08 | Medium risk |
| Threadneedle Global Bond | Global Bonds | GB0001533685 | Medium risk |
| Troy Asset Management Ltd Trojan Ethical | Flexible Investment | GB00BJP0XX17 | Medium risk |
| AXA Framlington Biotech | Specialist | GB00B784NS11 | High risk |
| AXA Framlington Global Technology | Technology & Telecommunications | GB00B4W52V57 | High risk |
| Baillie Gifford China | China/Greater China | GB00B39RMM81 | High risk |
| Baillie Gifford European | Europe Excluding UK | GB0006058258 | High risk |
| Baillie Gifford Long Term Global Growth Investment | Global | GB00BD5Z0Z54 | High risk |
| Baillie Gifford Positive Change | Global | GB00BYVGKV59 | High risk |
| LF Miton UK Smaller Companies | UK Smaller Companies | GB00B818N094 | High risk |
| Liontrust Global Technology | Technology & Telecommunications | GB00BYXZ5N79 | High risk |
| Morgan Stanley US Advantage | North America | GB00BZ4CG750 | High risk |
| T. Rowe Price Global Technology Equity | Technology & Telecommunications | GB00BD446K01 | 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 Investor Best of the Best list are listed below:
| Name | Sector | ISIN Code | Risk |
| ASI Sterling Bond | Global Bonds | GB00BWK26Y53 | Medium risk |
| AXA Framlington American Growth | North America | GB00B5LXGG05 | High risk |
| AXA Framlington Health | Specialist | GB00BRJZVQ71 | High risk |
| Barclays Sterling Bond | Sterling Strategic Bond | GB00B72Y6K08 | Medium risk |
| JPM Global Ex UK Bond | Global Bonds | GB0030877210 | Low risk |
| Royal London International Government Bond | Global Bonds | GB00B45XHL18 | Low risk |
| Schroder Gilt & Fixed Interest | UK Gilts | GB00BYTQ7F09 | Medium risk |
| Threadneedle China Opportunities | China/Greater China | GB00B1PRW734 | High risk |
| Vanguard UK Long Duration Gilt Index | UK Gilts | GB00B4M89245 | Medium 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 31% (27%)
- Alternatives 8% (11%) - includes absolute return strategies & some bond exposure
- UK Corporate Fixed Interest (i.e UK bonds) 0% (2%)
- Emerging Market Fixed Income 2% (0%)
- North American Equities 21% (26%)
- European Equities 8% (5%)
- Japanese Equities 4% (0%)
- Property 0% (0%)
- UK Equities 3% (0%)
- Gilts 16% (21%)
- Cash 3% (2%)
- Emerging market equities 0% (2%)
- Other international equities 0% (0%)
- Asian Equities 4% (4%)
- 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 a FTSE 100 tracker fund (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 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 portfolio has outperformed the average managed fund and the market.
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