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

Commentary

Of the 30 funds in May's BOTB, 14 funds have retained their place in June's selection. The chart below shows the average performance of the BOTB during May (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 underperformed its benchmark, which was due to its lack of US technology stocks exposure during a month when it was the best performing asset class. 

The top performing funds in May's BOTB are shown below. It's good to see abrdn High Yield Bond and CT European Select, which are both in my £50k portfolio, in the list.

Fund	May 2023 % return
Man GLG Japan Core Alpha	0.51
IFSL Marlborough High Yield Fixed Interest	0.29
abrdn High Yield Bond	0.2
CT European Select	0.12
Invesco Global Targeted Returns (UK)	-0.13

At the other end of the scale, European equity funds struggled the most, alongside Fundsmith Equity which is a recent addition to my £50k portfolio..

Fund	May 2023 % return
Fundsmith Equity	-4.29
Schroder UK Alpha Plus	-4.68
Schroder European Alpha	-5.19
LF Brook Continental European	-5.65
Schroder European Recovery	-6.56

With US tech stocks performing strongly of late it means that this month there have been some notable changes in the asset allocation of the BOTB. The selection's equity exposure has increased to 66% from the previous 63%, with North American equities now forming the largest allocation, at the expense of Asian equities, UK equities and alternative strategies. There are now also technology equity funds in the portfolio while European equities still hold significant weight. Meanwhile the portfolio's bond exposure remains 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 14 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
abrdn High Yield Bond	Sterling High Yield	GB00B79RR984	Lower risk
Artemis Strategic Assets	Flexible Investment	GB00B3VDD431	Medium risk
Aviva Inv Global Equity Income	Global Equity Income	GB0030441918	Medium risk
AXA Framlington Global Technology	Technology & Technology Innovation	GB00B4W52V57	Higher risk
AXA Global Short Duration Bonds	Sterling Strategic Bond	GB00BDFZQV30	Lower risk
BNY Mellon Global Dynamic Bond	Targeted Absolute Return	GB00B8K10865	Lower 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 European Select	Europe Excluding UK	GB0001529345	Higher risk
CT UK	UK All Companies	GB0001529782	Higher risk
Fidelity American	North America	GB00B8GPC429	Medium risk
Fidelity European	Europe Excluding UK	GB00BFRT3504	Medium risk
Fundsmith Equity	Global	GB00B4Q5X527	Medium risk
IFSL Marlborough High Yield Fixed Interest	Sterling High Yield	GB00B03TN153	Lower risk
Invesco Global Focus (UK)	Global	GB00B3KJYG12	Higher risk
Invesco Global Targeted Returns (UK)	Targeted Absolute Return	GB00B8CHD050	Lower risk
Jupiter European	Europe Excluding UK	GB0006664683	Higher risk
Liontrust Global Technology	Technology & Technology Innovation	GB00BYXZ5N79	Higher risk
M&G Short Dated Corporate Bond	Sterling Corporate Bond	GB0031110397	Lower risk
Man GLG Japan Core Alpha	Japan	GB00B3F46Y30	Medium risk
MI Metropolis Value	Global	GB00B3LDLX86	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 Sustainable Equity	Global	GB00BL6V0581	Medium risk
Royal London Sustainable Leaders Trust	UK All Companies	GB00B7V23Z99	Higher risk
Schroder MM Diversity	Mixed Investment 20-60% Shares	GB00B60CZD52	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
Thesis TM Tellworth UK Select	Targeted Absolute Return	GB00BNY7YM73	Lower risk
Troy Asset Management Ltd Trojan Global Equity	Global	GB00B0ZJ5S47	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
abrdn High Yield Bond	Sterling High Yield	GB00B79RR984	Lower risk
AXA Global Short Duration Bonds	Sterling Strategic Bond	GB00BDFZQV30	Lower risk
BNY Mellon Global Dynamic Bond	Targeted Absolute Return	GB00B8K10865	Lower risk
Close Sustainable Select Fixed Income	Sterling Strategic Bond	GB00BD6DSC14	Lower risk
IFSL Marlborough High Yield Fixed Interest	Sterling High Yield	GB00B03TN153	Lower risk
Invesco Global Targeted Returns (UK)	Targeted Absolute Return	GB00B8CHD050	Lower risk
M&G Short Dated Corporate Bond	Sterling Corporate Bond	GB0031110397	Lower risk
Ninety One Global Total Return Credit	Sterling Strategic Bond	GB00BFM79K62	Lower risk
Schroder MM Diversity	Mixed Investment 20-60% Shares	GB00B60CZD52	Lower risk
Thesis TM Tellworth UK Select	Targeted Absolute Return	GB00BNY7YM73	Lower 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
Fidelity American	North America	GB00B8GPC429	Medium risk
Fidelity European	Europe Excluding UK	GB00BFRT3504	Medium risk
Fundsmith Equity	Global	GB00B4Q5X527	Medium risk
Man GLG Japan Core Alpha	Japan	GB00B3F46Y30	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
CT UK	UK All Companies	GB0001529782	Higher risk
Invesco Global Focus (UK)	Global	GB00B3KJYG12	Higher risk
Jupiter European	Europe Excluding UK	GB0006664683	Higher risk
Liontrust Global Technology	Technology & Technology Innovation	GB00BYXZ5N79	Higher risk
MI Metropolis Value	Global	GB00B3LDLX86	Higher risk
Ninety One UK Special Situations	UK All Companies	GB00B1XFJS91	Higher risk
Royal London Sustainable Leaders Trust	UK All Companies	GB00B7V23Z99	Higher risk
T. Rowe Price US Large Cap Growth Equity	North America	GB00BD5FHW12	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
abrdn Global Equity	Global	GB0031682627	Medium risk
AXA Framlington UK Equity Income	UK Equity Income	GB00B7KBNV36	Medium risk
Fidelity Global Dividend	Global Equity Income	GB00B7778087	Medium risk
Fidelity Multi Asset Open Defensive	Mixed Investment 0-35% Shares	GB00BC7GXK56	Lower risk
Fidelity Sustainable European Equity	Europe Excluding UK	GB00B8287518	Higher risk
Fidelity UK Smaller Companies W Acc	UK Smaller Companies	GB00B7VNMB18	Higher risk
IFSL Marlborough Extra Income	Mixed Investment 40-85% Shares	GB0005662894	Medium risk
Invesco Asian Equity Income (UK) No Trail Acc	Asia Pacific Excluding Japan	GB00B4JR4R48	Higher risk
Jupiter Merlin Income Portfolio	Mixed Investment 20-60% Shares	GB0003629481	Lower risk
LF Brook Continental European	Europe Excluding UK	GB0031831570	Higher risk
LF Canlife Global Macro Bond	Global Bonds	GB00B4LW2X97	Lower risk
M&G Strategic Corporate Bond	Sterling Corporate Bond	GB00B4MQK815	Lower risk
Schroder European Alpha Plus	Europe Excluding UK	GB00B7LDKR32	Higher risk
Schroder European Recovery	Europe Excluding UK	GB0007221889	Higher risk
Schroder Monthly Income	Mixed Investment 20-60% Shares	GB00B78ST188	Lower risk
Schroder UK Alpha Plus	UK All Companies	GB00B5L33N61	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 21% (21%)
• UK Fixed Interest 3% (2%)
• Alternatives 3% (8%) - includes absolute return strategies
• North American Equities 21% (9%)
• Emerging Market Equities 0% (0%)
• European Equities 16% (18%)
• Japanese Equities 4% (4%)
• UK Equities 18% (21%)
• Cash 7% (6%)
• China Equities 0% (0%)
• Asian Equities 0% (3%)
• Other international equities 7% (8%)
• 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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