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

Commentary

Of the 30 funds in October's BOTB, 20 funds have retained their place in November's selection in another sign of consistency. The chart below illustrates the average performance of the BOTB during October (the blue line) against a benchmark that uses the respective sector averages for each fund in the BOTB, assuming the same asset mix (the green line). You can see that the BOTB significantly outperformed the average professionally managed fund from the Mixed Investment 40-85% Shares sector (grey line).

The top-performing funds in October's BOTB are highlighted below, which includes short-dated bond funds as well as alternative assets. Thesis TM Tellworth UK Select, which is my own £50k portfolio, tops the chart.

Fund	October 2023 % return
Thesis TM Tellworth UK Select	1.39
M&G Short Dated Corporate Bond	0.73
WS Canlife Short Duration Corporate Bond	0.58
Man GLG Sterling Corporate Bond	0.5
Premier Miton Strategic Monthly Income Bond	0.29

At the other end of the scale, UK equities and technology focused funds struggled with the latter hit by a stronger US dollar and rising bond yields as explained in November's monthly newsletter. Interestingly, both UBS US Equity and Liontrust Global Technology retained their place in the BOTB, despite their disappointing October performances, and in just the first 3 days of November they have rallied 2.64% and 5.27% respectively. 

Fund	October 2023 % return
UBS US Equity	-4.27
MI Metropolis Value	-4.72
Man GLG Income	-5.15
Man GLG Undervalued Assets	-6.16
Liontrust Global Technology	-6.23

In terms of asset mix, UK equities exposure has been all but removed from the BOTB with US equities now making up almost 30% of the BOTB asset mix. The allocation to Emerging Market Equities (across Asia and the Americas) has also increased, indicating a further pivot towards emerging markets. There's also new exposure to commodity stocks (more specifically energy stocks) plus a modest uptick in UK Fixed Interest. Overall the total equity exposure has decreased marginally and returned to 62%, down from to 64%. You can see the full asset mix breakdown later in this article.

Below I list this month's selection in full with the 20 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.

November'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 High Yield Bond	Sterling High Yield	GB00B79RR984	Lower risk
Artemis Global Income	Global Equity Income	GB00B5N99561	Medium risk
Artemis SmartGARP European Equity	Europe Excluding UK	GB00B2PLJD73	Higher risk
Artemis US Select	North America	GB00BMMV5105	Medium risk
AXA Framlington Global Technology	Technology & Technology Innovation	GB00B4W52V57	Higher risk
AXA Global Short Duration Bonds	Sterling Strategic Bond	GB00BDFZQV30	Lower risk
Barclays Wealth Wealth Global Markets 4	Mixed Investment 40-85% Shares	GB00B4ZFH287	Medium risk
CT High Yield Bond	Sterling High Yield	GB0008371014	Lower risk
CT Latin America	Latin America	GB0001531754	Higher risk
Fidelity American	North America	GB00B8GPC429	Medium risk
Fidelity Japan	Japan	GB00B882N041	Medium risk
FTF Franklin US Opportunities	North America	GB00B7KCG406	Higher risk
Invesco Emerging Markets ex China (UK)	Global Emerging Markets	GB00B3RW8X82	Higher risk
Invesco Global Equity (UK)	Global	GB00B3RS9Q62	Medium risk
Jupiter India	India/Indian Subcontinent	GB00B2NHJ040	Higher risk
L&G Global 100 Index Trust	Global	GB00B0CNH056	Medium risk
Lazard Emerging Markets	Global Emerging Markets	GB00B24F1G74	Higher risk
Liontrust Global Technology	Technology & Technology Innovation	GB00BYXZ5N79	Higher risk
M&G Short Dated Corporate Bond	Sterling Corporate Bond	GB0031110397	Lower risk
Man GLG Absolute Value	Targeted Absolute Return	GB00BF1X8084	Lower risk
Premier Miton Strategic Monthly Income Bond	Sterling Strategic Bond	GB00BMWVS110	Lower risk
Schroder High Yield Opportunities	Sterling High Yield	GB00B83RDY83	Lower risk
Schroder Strategic Credit	Sterling Strategic Bond	GB00BJZ2ZC09	Lower risk
T. Rowe Price Global Focused Growth Equity	Global	GB00BD446774	Medium risk
T. Rowe Price US Large Cap Growth Equity	North America	GB00BD5FHW12	Higher risk
Thesis TM Tellworth UK Select	Targeted Absolute Return	GB00BNY7YM73	Lower risk
UBS US Equity	North America	GB00B7V68L26	Medium risk
WS Canlife Short Duration Corporate Bond	Sterling Corporate Bond	GB00BD0CNM97	Lower risk
WS Guinness Global Energy	Commodity/Natural Resource	GB00B56FW078	Higher risk
WS Morant Wright Nippon Yield	Japan	GB00B42MKS95	Medium risk

November's Best of the Best Selection - (grouped by risk)

Here is November'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
AXA Global Short Duration Bonds	Sterling Strategic Bond	GB00BDFZQV30	Lower risk
CT High Yield Bond	Sterling High Yield	GB0008371014	Lower risk
M&G Short Dated Corporate Bond	Sterling Corporate Bond	GB0031110397	Lower risk
Man GLG Absolute Value	Targeted Absolute Return	GB00BF1X8084	Lower risk
Premier Miton Strategic Monthly Income Bond	Sterling Strategic Bond	GB00BMWVS110	Lower risk
Schroder High Yield Opportunities	Sterling High Yield	GB00B83RDY83	Lower risk
Schroder Strategic Credit	Sterling Strategic Bond	GB00BJZ2ZC09	Lower risk
Thesis TM Tellworth UK Select	Targeted Absolute Return	GB00BNY7YM73	Lower risk
WS Canlife Short Duration Corporate Bond	Sterling Corporate Bond	GB00BD0CNM97	Lower risk
Artemis Global Income	Global Equity Income	GB00B5N99561	Medium risk
Artemis US Select	North America	GB00BMMV5105	Medium risk
Barclays Wealth Wealth Global Markets 4	Mixed Investment 40-85% Shares	GB00B4ZFH287	Medium risk
Fidelity American	North America	GB00B8GPC429	Medium risk
Fidelity Japan	Japan	GB00B882N041	Medium risk
Invesco Global Equity (UK)	Global	GB00B3RS9Q62	Medium risk
L&G Global 100 Index Trust	Global	GB00B0CNH056	Medium risk
T. Rowe Price Global Focused Growth Equity	Global	GB00BD446774	Medium risk
UBS US Equity	North America	GB00B7V68L26	Medium risk
WS Morant Wright Nippon Yield	Japan	GB00B42MKS95	Medium risk
Artemis SmartGARP European Equity	Europe Excluding UK	GB00B2PLJD73	Higher risk
AXA Framlington Global Technology	Technology & Technology Innovation	GB00B4W52V57	Higher risk
CT Latin America	Latin America	GB0001531754	Higher risk
FTF Franklin US Opportunities	North America	GB00B7KCG406	Higher risk
Invesco Emerging Markets ex China (UK)	Global Emerging Markets	GB00B3RW8X82	Higher risk
Jupiter India	India/Indian Subcontinent	GB00B2NHJ040	Higher risk
Lazard Emerging Markets	Global Emerging Markets	GB00B24F1G74	Higher risk
Liontrust Global Technology	Technology & Technology Innovation	GB00BYXZ5N79	Higher risk
T. Rowe Price US Large Cap Growth Equity	North America	GB00BD5FHW12	Higher risk
WS Guinness Global Energy	Commodity/Natural Resource	GB00B56FW078	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
AXA Global High Yield	Sterling High Yield	GB00B29NGF01	Lower risk
AXA US Short Duration High Yield Bond	Global Bonds	GB00B59VLT43	Lower risk
Jupiter Merlin Growth Portfolio	Flexible Investment	GB0003629267	Medium risk
Liontrust India	India/Indian Subcontinent	GB00B1L6DV51	Higher risk
Man GLG Income	UK Equity Income	GB00B0117C28	Higher risk
Man GLG Sterling Corporate Bond	Sterling Corporate Bond	GB00BNLYQX62	Lower risk
Man GLG Undervalued Assets	UK All Companies	GB00BFH3NC99	Higher risk
MI Metropolis Value	Global	GB00B3LDLX86	Medium risk
Royal London Global Equity Select	Global	GB00BF93W972	Medium risk
Troy Asset Management Ltd Trojan Global Equity	Global	GB00B0ZJ5S47	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 23% (24%)
• UK Fixed Interest 3% (0%)
• Alternatives 10% (8%) - includes absolute return strategies
• North American Equities 29% (27%)
• American Emerging Market Equities 4% (0%)
• Asian Emerging Market Equities 8% (7%)
• European Equities 6% (5%)
• Japanese Equities 7% (7%)
• UK Equities 2% (10%)
• Cash 2% (4%)
• China Equities 0% (0%)
• Other international equities 3% (8%)
• Commodities and Energy 3% (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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