Commentary
Of the 30 funds in April's BOTB, 24 funds have retained their place in May’s selection. This is possibly the largest number of funds to retain their place from one month to the next in the history of 80-20 Investor. Perhaps it's not surprising given the selection’s performance during the month versus its benchmarks. The chart below shows the average performance of the BOTB during April (the green 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 purple line). You can see that the BOTB outperformed its benchmark once again.
The chart also shows how the selection performed versus the average professionally managed fund from the Mixed Investment 20-60% Shares sector and the Mixed Investment 40-85% Shares sector. The former is typically more cautious than the BOTB given its lower equity exposure while the latter tends to be more adventurous. You can see that the BOTB avoided the market falls in early April but did fall harder during the sell-off later in the month (which particularly affected commodities), however it rebounded more strongly than the other portfolios. Once again, the moves are a result of the BOTB's multi-asset approach which includes commodities.
The table below shows the top seven performers from April’s BOTB and it's good to see that Premier Miton Defensive Growth, which features in my own £50k portfolio, makes an appearance.
| Fund | April % return |
| TB Guinness Global Energy | 3.59 |
| Premier Miton Defensive Growth | 1.42 |
| T. Rowe Price Dynamic Global Bond | 1.17 |
| Barings Global Agriculture | 1.01 |
| FP Russell Investments Real Assets | 0.9 |
At the other end of the scale, the worst-performing funds are shown in the table below, and it's worth noting that Fidelity Index US, which features in my £50k portfolio, had a poor month due to a slump in the S&P 500 which the fund effectively tracks.
| Fund | April % return |
| Royal London Global Equity Select | -1.43 |
| Ninety One Global Gold | -2.45 |
| Schroder Income | -2.75 |
| Fidelity Index US | -3.51 |
| ASI Latin American Equity | -6.71 |
This month's selection sees the equity exposure remain around 60% with very little change in the asset mix. The most notable change is that exposure to European equities has reappeared, despite the ongoing war in Ukraine, which is reflective of the more accommodative stance of the European Central Bank versus other major central banks at the moment.
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 seven years ago.
Below I list this month's selection in full with the 24 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.
May'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 |
| ASI Latin American Equity | Latin America | GB00B41QSW23 | High risk |
| ASI World Income Equity | Global Equity Income | GB00B3N9CY25 | Medium risk |
| Barings Global Agriculture | Commodity/Natural Resources | GB00B3B9V927 | High risk |
| BlackRock Natural Resources Growth & Income | Commodity/Natural Resources | GB00B6865B79 | High risk |
| BM SVS Brooks Macdonald Defensive Capital | Targeted Absolute Return | GB00B61MR835 | Low risk |
| BNY Mellon Global Income | Global Equity Income | GB00B7XK5M25 | Medium risk |
| Close Diversified Income Portfolio | Mixed Investment 20-60% Shares | GB00B708TJ43 | Low risk |
| Fidelity American Special Situations | North America | GB00B89ST706 | Medium risk |
| Fidelity Global Property | Property Other | GB00B7K2NZ09 | High risk |
| Fidelity Moneybuilder Balanced | Mixed Investment 40-85% Shares | GB00B7XJFX07 | Low risk |
| First Sentier Global Listed Infrastructure | Infrastructure | GB00B24HJL45 | High risk |
| First Sentier Global Property Securities | Property Other | GB00B1F76N79 | High risk |
| FP Russell Investments Real Assets | Flexible Investment | GB00B4KQS127 | Medium risk |
| Invesco UK Opportunities (UK) | UK All Companies | GB00B1W7HM62 | Medium risk |
| JOHCM Global Opportunities | Global | GB00BJ5JMC04 | Medium risk |
| JPM Natural Resources | Commodity/Natural Resources | GB0031835118 | High risk |
| JPM US Equity Income | North America | GB00B3FJQ151 | Medium risk |
| M&G Global Listed Infrastructure | Infrastructure | GB00BF00R928 | Medium risk |
| Ninety One Global Gold | Specialist | GB00B1XFGM25 | High risk |
| Premier Miton Defensive Growth | Targeted Absolute Return | GB00B832BD89 | Low risk |
| Royal London GMAP Balanced | Mixed Investment 20-60% Shares | GB00BD8RSQ51 | Low risk |
| Royal London Short Duration Global Index Linked | Global Bonds | GB00BD050F05 | Low risk |
| Schroder Income | UK Equity Income | GB00B3PM1190 | Medium risk |
| Schroder MM Diversity | Mixed Investment 20-60% Shares | GB00B60CZD52 | Low risk |
| T. Rowe Price Dynamic Global Bond | Targeted Absolute Return | GB00BD0NLR34 | Low risk |
| TB Guinness Global Energy | Commodity/Natural Resources | GB00B56FW078 | High risk |
| Thesis TM Tellworth UK Select | Targeted Absolute Return | GB00BNY7YM73 | Low risk |
| Troy Asset Management Ltd Trojan Ethical | Flexible Investment | GB00BJP0XX17 | Low risk |
| Vanguard FTSE UK Equity Income Index | UK Equity Income | GB00B59G4H82 | Medium risk |
| VT Price Value Portfolio | Global | GB00BWZMTX09 | High risk |
May's Best of the Best Selection - (grouped by risk)
Here is May'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 |
| BM SVS Brooks Macdonald Defensive Capital | Targeted Absolute Return | GB00B61MR835 | Low risk |
| Close Diversified Income Portfolio | Mixed Investment 20-60% Shares | GB00B708TJ43 | Low risk |
| Fidelity Moneybuilder Balanced | Mixed Investment 40-85% Shares | GB00B7XJFX07 | Low risk |
| Premier Miton Defensive Growth | Targeted Absolute Return | GB00B832BD89 | Low risk |
| Royal London GMAP Balanced | Mixed Investment 20-60% Shares | GB00BD8RSQ51 | Low risk |
| Royal London Short Duration Global Index Linked | Global Bonds | GB00BD050F05 | Low risk |
| Schroder MM Diversity | Mixed Investment 20-60% Shares | GB00B60CZD52 | Low risk |
| T. Rowe Price Dynamic Global Bond | Targeted Absolute Return | GB00BD0NLR34 | Low risk |
| Thesis TM Tellworth UK Select | Targeted Absolute Return | GB00BNY7YM73 | Low risk |
| Troy Asset Management Ltd Trojan Ethical | Flexible Investment | GB00BJP0XX17 | Low risk |
| ASI World Income Equity | Global Equity Income | GB00B3N9CY25 | Medium risk |
| BNY Mellon Global Income | Global Equity Income | GB00B7XK5M25 | Medium risk |
| Fidelity American Special Situations | North America | GB00B89ST706 | Medium risk |
| FP Russell Investments Real Assets | Flexible Investment | GB00B4KQS127 | Medium risk |
| Invesco UK Opportunities (UK) | UK All Companies | GB00B1W7HM62 | Medium risk |
| JOHCM Global Opportunities | Global | GB00BJ5JMC04 | Medium risk |
| JPM US Equity Income | North America | GB00B3FJQ151 | Medium risk |
| M&G Global Listed Infrastructure | Infrastructure | GB00BF00R928 | Medium risk |
| Schroder Income | UK Equity Income | GB00B3PM1190 | Medium risk |
| Vanguard FTSE UK Equity Income Index | UK Equity Income | GB00B59G4H82 | Medium risk |
| ASI Latin American Equity | Latin America | GB00B41QSW23 | High risk |
| Barings Global Agriculture | Commodity/Natural Resources | GB00B3B9V927 | High risk |
| BlackRock Natural Resources Growth & Income | Commodity/Natural Resources | GB00B6865B79 | High risk |
| Fidelity Global Property | Property Other | GB00B7K2NZ09 | High risk |
| First Sentier Global Listed Infrastructure | Infrastructure | GB00B24HJL45 | High risk |
| First Sentier Global Property Securities | Property Other | GB00B1F76N79 | High risk |
| JPM Natural Resources | Commodity/Natural Resources | GB0031835118 | High risk |
| Ninety One Global Gold | Specialist | GB00B1XFGM25 | High risk |
| TB Guinness Global Energy | Commodity/Natural Resources | GB00B56FW078 | High risk |
| VT Price Value Portfolio | Global | GB00BWZMTX09 | 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 Global Real Estate Share | Property Other | GB00B7MR5W47 | High risk |
| Courtiers Total Return Cautious Risk | Mixed Investment 20-60% Shares | GB00B1P2K418 | Low risk |
| Fidelity Index US | North America | GB00BJS8SH10 | High risk |
| FP Foresight Sustainable Real Estate Securities | Property Other | GB00BMFYBB80 | High risk |
| Royal London Global Equity Select | Global | GB00BF93W972 | Medium risk |
| Royal London UK Income With Growth Trust | Mixed Investment 40-85% Shares | GB0001598050 | 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 11% (12%)
- Alternatives 18% (21%) - includes absolute return strategies & some bond exposure
- UK Corporate Fixed Interest (i.e UK bonds) 0% (0%)
- Emerging Market Fixed Income 4% (0%)
- North American Equities 17% (13%)
- European Equities 5% (0%)
- Chinese Equities 0% (0%)
- Japanese Equities 0% (0%)
- Property 8% (8%)
- UK Equities 16% (17%)
- Gilts 0% (0%)
- Cash 5% (4%)
- Asian / Emerging market equities 0% (6%)
- Other international equities 0% (3%)
- Commodities and Energy 16% (16%)
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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