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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