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

April was a good month for UK investors as a surprise slump in the value of the pound boosted UK equity returns and amplified those of overseas assets. Riskier assets once again outperformed lower risk assets (such as bonds) with funds invested in large-cap UK companies rallying the most. From last month's selection Schroder Income produced an astounding 7.89% in April alone! Other stand-out performers include Natixis H2O MultiReturns (up 7%), Schroder Global Equity Income (up 6.8%), Schroder Income Maximiser (up 6.43%) and AXA Framlington American Growth (up 5.81%). Down the other end of the spectrum bond market weakness hampered bond funds and their returns ranged from +0.5% to -1.16%.

If you look at the latest heatmap you can see this overall trend replicated in April's column. With rising US Treasury yields spooking investors bond funds struggled, especially those investing in government debt such as treasuries and gilts.