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.
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