80-20 Investor Best of the Best Selection – May 2023 Update

Commentary

Of the 30 funds in April's BOTB, 18 funds have retained their place in May's selection. The chart below shows the average performance of the BOTB during April (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 outperformed its benchmark as its UK and European equity holdings with limited bank exposure helped boost performance .

The top performing funds in April's BOTB are shown below and there were some very strong performances. It's good to see AXA Framlington UK Equity Income, which is a recent addition to my £50k portfolio, in the list.

Fund	April 2023 % return
Schroder UK Alpha Plus	3.92
TB Evenlode Global Income	2.94
AXA Framlington UK Equity Income	2.61
Aviva Inv Global Equity Income	2.55
Artemis Strategic Assets	2.41

 

At the other end of the scale only four funds made a loss, two of which I hold in my £50k portfolio but those losses were more than offset by gains elsewhere.

Fund	April 2023 % return
Schroder Global Recovery	0
Fidelity Index Japan	-0.15
Jupiter Global Value Equity	-0.49
MI MI Chelverton European Select	-1.88
Invesco Asian Equity Income (UK)	-2.05

 

Given the strong performance of the BOTB as a whole it is not surprising that May's BOTB fund list looks very similar to April's. Interestingly the selection's equity exposure has increased to 63%, up from 60%, along with subtle changes to the asset mix. There remains significant European equity exposure but UK equities are now the largest constituent of the portfolio. There has also been another slight increase in bond exposure at the expense of alternative strategies (i.e. targeted absolute funds). 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 eight years ago.

Below I list this month's selection in full with the 18 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
abrdn Global Equity	Global	GB0031682627	Medium 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 UK Equity Income	UK Equity Income	GB00B7KBNV36	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 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
Fundsmith Equity	Global	GB00B4Q5X527	Medium risk
IFSL Marlborough Extra Income	Mixed Investment 40-85% Shares	GB0005662894	Medium risk
IFSL Marlborough High Yield Fixed Interest	Sterling High Yield	GB00B03TN153	Lower risk
Invesco Asian Equity Income (UK) No Trail Acc	Asia Pacific Excluding Japan	GB00B4JR4R48	Higher risk
Invesco Global Targeted Returns (UK)	Targeted Absolute Return	GB00B8CHD050	Lower 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
Man GLG Japan Core Alpha	Japan	GB00B3F46Y30	Medium risk
Ninety One UK Special Situations	UK All Companies	GB00B1XFJS91	Higher risk
Schroder European Alpha Plus	Europe Excluding UK	GB00B7LDKR32	Higher risk
Schroder European Recovery	Europe Excluding UK	GB0007221889	Higher risk
Schroder MM Diversity	Mixed Investment 20-60% Shares	GB00B60CZD52	Lower risk
Schroder Monthly Income	Mixed Investment 20-60% Shares	GB00B78ST188	Lower risk
Schroder UK Alpha Plus	UK All Companies	GB00B5L33N61	Higher risk
TB Evenlode Global Income	Global Equity Income	GB00BF1QMV61	Medium risk
Troy Asset Management Ltd Trojan Global Equity	Global	GB00B0ZJ5S47	Medium 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
abrdn High Yield Bond	Sterling High Yield	GB00B79RR984	Lower risk
Close Sustainable Select Fixed Income	Sterling Strategic Bond	GB00BD6DSC14	Lower risk
Fidelity Multi Asset Open Defensive	Mixed Investment 0-35% Shares	GB00BC7GXK56	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
Jupiter Merlin Income Portfolio	Mixed Investment 20-60% Shares	GB0003629481	Lower risk
LF Canlife Global Macro Bond	Global Bonds	GB00B4LW2X97	Lower risk
M&G Strategic Corporate Bond	Sterling Corporate Bond	GB00B4MQK815	Lower risk
Schroder MM Diversity	Mixed Investment 20-60% Shares	GB00B60CZD52	Lower risk
Schroder Monthly Income	Mixed Investment 20-60% Shares	GB00B78ST188	Lower risk
abrdn Global Equity	Global	GB0031682627	Medium risk
Artemis Strategic Assets	Flexible Investment	GB00B3VDD431	Medium risk
Aviva Inv Global Equity Income	Global Equity Income	GB0030441918	Medium risk
AXA Framlington UK Equity Income	UK Equity Income	GB00B7KBNV36	Medium risk
Fidelity Global Dividend	Global Equity Income	GB00B7778087	Medium risk
Fundsmith Equity	Global	GB00B4Q5X527	Medium risk
IFSL Marlborough Extra Income	Mixed Investment 40-85% Shares	GB0005662894	Medium risk
Man GLG Japan Core Alpha	Japan	GB00B3F46Y30	Medium risk
TB Evenlode Global Income	Global Equity Income	GB00BF1QMV61	Medium risk
Troy Asset Management Ltd Trojan Global Equity	Global	GB00B0ZJ5S47	Medium risk
CT European Select	Europe Excluding UK	GB0001529345	Higher risk
CT UK	UK All Companies	GB0001529782	Higher risk
Fidelity Sustainable European Equity	Europe Excluding UK	GB00B8287518	Higher risk
Fidelity UK Smaller Companies W Acc	UK Smaller Companies	GB00B7VNMB18	Higher risk
Invesco Asian Equity Income (UK) No Trail Acc	Asia Pacific Excluding Japan	GB00B4JR4R48	Higher risk
LF Brook Continental European	Europe Excluding UK	GB0031831570	Higher risk
Ninety One UK Special Situations	UK All Companies	GB00B1XFJS91	Higher risk
Schroder European Alpha Plus	Europe Excluding UK	GB00B7LDKR32	Higher risk
Schroder European Recovery	Europe Excluding UK	GB0007221889	Higher risk
Schroder UK Alpha Plus	UK All Companies	GB00B5L33N61	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
7IM Real Return	Targeted Absolute Return	GB00B75MS619	Lower risk
BNY Mellon Global Income	Global Equity Income	GB00B7XK5M25	Medium risk
CT Dynamic Real Return	Targeted Absolute Return	GB00B93TQ868	Lower risk
Fidelity Index Japan	Japan	GB00BHZK8872	Medium risk
Invesco Corporate Bond (UK)	Sterling Corporate Bond	GB00B1W7HY84	Lower risk
Jupiter Global Value Equity	Global	GB00BF5DRF26	Medium risk
Margetts MGTS Sentinel Defensive	Mixed Investment 0-35% Shares	GB00B7754B55	Lower risk
MI MI Chelverton European Select	Europe Excluding UK	GB00BFNL2N15	Higher risk
MI Thornbridge Global Opportunities	Global	GB00B5TP8W88	Higher risk
Morgan Stanley Sterling Corporate Bond	Sterling Corporate Bond	GB0004757497	Lower risk
Schroder Global Recovery	Global	GB00BYRJXL91	Higher risk
TB Saracen Global Income & Growth	Global Equity Income	GB00B5B35X02	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 21% (19%)
• UK Fixed Interest 2% (0%)
• Alternatives 8% (13%) - includes absolute return strategies
• North American Equities 9% (10%)
• Emerging Market Equities 0% (0%)
• European Equities 18% (19%)
• Japanese Equities 4% (4%)
• UK Equities 21% (17%)
• Cash 6% (7%)
• China Equities 0% (0%)
• Asian Equities 3% (3%)
• Other international equities 8% (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.

 

 

 

All performance figures are net of fund charges. The material in any email, the MoneytotheMasses.com website, associated pages / channels / accounts and any other correspondence are for general information only and do not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation. See full Terms & Conditions, Privacy Policy and Disclaimer.

Neither MoneytotheMasses.com or 80-20 Investor nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Funds invest in shares, bonds, and other financial instruments and are by their nature speculative and can be volatile. You should never invest more than you can safely afford to lose. The value of your investment can go down as well as up so you may get back less than you originally invested. Tax rules can change and benefits depend on individual circumstances.
Information provided by MoneytotheMasses.com or 80-20 Investor is for general information only and not intended to be relied upon by readers in making (or not making) specific investment decisions.
Appropriate independent advice should be obtained before making any such decisions. Leadenhall Learning (owner of MoneytotheMasses.com or 80-20 Investor) and its staff do not accept liability for any loss suffered by readers as a result of any such decisions.
The tables and graphs are derived from data supplied by Trustnet. All Rights Reserved.