80-20 Investor Best of the Best Selection – May 2022 Update

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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