80-20 Investor Best of the Best Selection – June 2024 Update

Commentary

Of the 30 funds in May's BOTB selection 22 funds have retained their place which is one of the highest numbers I've seen over the 10 years that I've been running 80-20 Investor. It is worth highlighting that after a disappointing April I explained why the funds within the BOTB still remained fairly consistent. I pointed out that the 80-20 Investor algorithm doesn't focus on short term trends when assessing momentum. But had the weakness we'd seen in April become more entrenched then we would likely have seen more changes to the funds contained in the BOTB and also its asset mix going forwards. As it turns out the process was rewarded as the performance of the BOTB recovered in May (as shown in the table below).

Obviously, the chart above only looks at the average across all of the funds within the BOTB. The top-performing funds in May's BOTB are highlighted in the table below. The standout performers were funds that had exposure to UK equities and US technology stocks. It's good to see that Ninety One UK Special Situations, which is in my own £50k portfolio, is still performing well.

Fund	May 2024 % return
Unicorn UK Smaller Companies	4.55
L&G Global Technology Index Trust	4.23
Ninety One UK Special Situations	3.82
Artemis SmartGARP European Equity	2.9
T. Rowe Price Global Technology Equity	2.84

At the other end of the scale, funds with exposure to Indian equites were among the biggest losers. You will be aware from my recent newsletters that the rally in Indian equities reversed course in the run up to the Indian election.

Fund	May 2024 % return
FTF Templeton Global Leaders	-0.75
Jupiter India	-1.01
Liontrust India	-1.66
Invesco Global Focus (UK)	-2
Liontrust US Opportunities	-3.06

In terms of asset mix the only significant change is the reduction in the exposure to Indian and US equities in favour of UK equities. The BOTB's full asset mix is shown later in this article. Overall the total equity exposure sits at 63%.

Below I list this month's selection in full with the 22 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 Global Focused Equity	Global	GB00B6915J97	Medium risk
abrdn High Yield Bond	Sterling High Yield	GB00B79RR984	Lower risk
Artemis Global Income	Global Equity Income	GB00B5N99561	Medium risk
Artemis SmartGARP European Equity	Europe Excluding UK	GB00B2PLJD73	Medium risk
Artemis SmartGARP Global Emerging Markets Equity	Global Emerging Markets	GB00BW9HL132	Medium risk
Artemis US Select	North America	GB00BMMV5105	Medium risk
Aviva Inv Multi Strategy Target Return	Targeted Absolute Return	GB00BMTRW090	Lower risk
AXA Framlington Managed Income	Sterling Strategic Bond	GB00B7H1PG56	Lower risk
CT High Yield Bond	Sterling High Yield	GB0008371014	Lower risk
FTF Franklin US Opportunities	North America	GB00B7KCG406	Higher risk
Invesco High Yield (UK)	Sterling High Yield	GB00B3RW7649	Lower risk
Janus Henderson European Mid and Large Cap	Europe Excluding UK	GB00BJ0LFG67	Higher risk
Janus Henderson US Sustainable Equity	North America	GB00BPH3DD08	Higher risk
L&G Global 100 Index Trust	Global	GB00B0CNH056	Medium risk
L&G Global Technology Index Trust	Technology & Technology Innovation	GB00B0CNH163	Higher risk
L&G Strategic Bond	Sterling Strategic Bond	GB00B1TWMW95	Lower risk
L&G UK Equity Income	UK Equity Income	GB00B6HBD759	Higher risk
Liontrust India	India/Indian Subcontinent	GB00B1L6DV51	Higher risk
Man GLG Absolute Value	Targeted Absolute Return	GB00BF1X8084	Lower risk
Man GLG High Yield Opportunities	Sterling High Yield	GB00BJK3W057	Lower risk
Ninety One UK Special Situations	UK All Companies	GB00B1XFJS91	Higher risk
Schroder High Yield Opportunities	Sterling High Yield	GB00B83RDY83	Lower risk
Schroder Strategic Credit	Sterling Strategic Bond	GB00BJZ2ZC09	Lower risk
Schroder UK Mid 250	UK All Companies	GB00B76V7S22	Higher risk
Schroder UK Smaller Companies	UK Smaller Companies	GB00B76V7Z98	Higher risk
T. Rowe Price Global Technology Equity	Technology & Technology Innovation	GB00BD446K01	Higher risk
T. Rowe Price US Large Cap Growth Equity	North America	GB00BD5FHW12	Medium risk
Unicorn UK Smaller Companies	UK Smaller Companies	GB0031791238	Medium risk
WS Morant Wright Nippon Yield	Japan	GB00B42MKS95	Medium risk
WS Saracen Global Income and Growth	Global Equity Income	GB00B5B35X02	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
Aviva Inv Multi Strategy Target Return	Targeted Absolute Return	GB00BMTRW090	Lower risk
AXA Framlington Managed Income	Sterling Strategic Bond	GB00B7H1PG56	Lower risk
CT High Yield Bond	Sterling High Yield	GB0008371014	Lower risk
Invesco High Yield (UK)	Sterling High Yield	GB00B3RW7649	Lower risk
L&G Strategic Bond	Sterling Strategic Bond	GB00B1TWMW95	Lower risk
Man GLG Absolute Value	Targeted Absolute Return	GB00BF1X8084	Lower risk
Man GLG High Yield Opportunities	Sterling High Yield	GB00BJK3W057	Lower risk
Schroder High Yield Opportunities	Sterling High Yield	GB00B83RDY83	Lower risk
Schroder Strategic Credit	Sterling Strategic Bond	GB00BJZ2ZC09	Lower risk
abrdn Global Focused Equity	Global	GB00B6915J97	Medium risk
Artemis Global Income	Global Equity Income	GB00B5N99561	Medium risk
Artemis SmartGARP European Equity	Europe Excluding UK	GB00B2PLJD73	Medium risk
Artemis SmartGARP Global Emerging Markets Equity	Global Emerging Markets	GB00BW9HL132	Medium risk
Artemis US Select	North America	GB00BMMV5105	Medium risk
L&G Global 100 Index Trust	Global	GB00B0CNH056	Medium risk
T. Rowe Price US Large Cap Growth Equity	North America	GB00BD5FHW12	Medium risk
Unicorn UK Smaller Companies	UK Smaller Companies	GB0031791238	Medium risk
WS Morant Wright Nippon Yield	Japan	GB00B42MKS95	Medium risk
WS Saracen Global Income and Growth	Global Equity Income	GB00B5B35X02	Medium risk
FTF Franklin US Opportunities	North America	GB00B7KCG406	Higher risk
Janus Henderson European Mid and Large Cap	Europe Excluding UK	GB00BJ0LFG67	Higher risk
Janus Henderson US Sustainable Equity	North America	GB00BPH3DD08	Higher risk
L&G Global Technology Index Trust	Technology & Technology Innovation	GB00B0CNH163	Higher risk
L&G UK Equity Income	UK Equity Income	GB00B6HBD759	Higher risk
Liontrust India	India/Indian Subcontinent	GB00B1L6DV51	Higher risk
Ninety One UK Special Situations	UK All Companies	GB00B1XFJS91	Higher risk
Schroder UK Mid 250	UK All Companies	GB00B76V7S22	Higher risk
Schroder UK Smaller Companies	UK Smaller Companies	GB00B76V7Z98	Higher risk
T. Rowe Price Global Technology Equity	Technology & Technology Innovation	GB00BD446K01	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
Allianz Continental European	Europe Excluding UK	GB00B3Q8YX99	Higher risk
Allianz Emerging Markets Equity	Global Emerging Markets	GB00B0WDH832	Medium risk
FTF Templeton Global Leaders	Global	GB00B7K6LK38	Medium risk
Invesco Global Focus (UK)	Global	GB00B3KJYG12	Higher risk
Jupiter India	India/Indian Subcontinent	GB00B2NHJ040	Higher risk
Liontrust Balanced	Mixed Investment 40-85% Shares	GB00B85K7211	Medium risk
Liontrust US Opportunities	North America	GB00B7K9LQ88	Higher risk
UBS US Growth	North America	GB00B7VHZX64	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 20% (19%)
• UK Fixed Interest 4% (4%)
• Alternatives 11% (11%) - includes absolute return strategies
• North American Equities 25% (29%)
• American Emerging Market Equities 0% (0%)
• Asian Emerging Market Equities 6% (10%)
• European Equities 11% (11%)
• Japanese Equities 4% (4%)
• UK Equities 17% (8%)
• Cash 2% (2%)
• China Equities 0% (0%)
• Property Equities 0% (0%)
• Other International Equities 0% (2%)
• 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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