80-20 Investor Best of the Best Selection – November 2024 Update

Commentary

Of the 30 funds in October's BOTB selection 15 funds have retained their place which is the lowest number for some time, which perhaps isn't surprising given that the BOTB struggled versus its benchmarks as shown below. One of the key themes of October was the pound falling by 4% against the US dollar during the month, caused by a combination of investors becoming more cautious over the speed at which the US Federal Reserve will be able to cut interest rates, while at the same time becoming worried about the UK economy and the government's future spending and borrowing plans. As such, the BOTB's UK bias meant that the selection benefited less from any currency boost provided by the weakening pound.

Digging deeper into the performance of the BOTB during October, the table below highlights the top 5 performing funds for the month. These were made up of the lower risk funds within the BOTB and the more defensively positioned equity funds (i.e. equity income funds).

Fund	October 2024 % return
M&G Global Dividend	1.43
CT High Yield Bond	1.21
Thesis TM Tellworth UK Select	1.13
Baillie Gifford High Yield Bond	0.86
Invesco Global Equity Income (UK)	0.71

At the other end of the scale, the biggest losers were inevitably UK equity funds but also Asian equities with the latter lagging as Japanese politics and investor impatience over the implementation of Chinese stimulus measures took hold of investment markets.

Fund	October 2024 % return
Schroder UK Smaller Companies	-2.55
Invesco UK Opportunities (UK)	-2.59
Invesco Asian (UK)	-3.12
FSSA Indian Subcontinent All-Cap	-3.19
Invesco Japanese Equity Advantage (UK)	-4.1

In terms of November's asset mix, the significant currency moves have led to the BOTB's UK equity exposure reducing in favour of US equities. At the same time, emerging market and Asian equity exposure has reduced, again in favour of US equities. It means that US equities are once again the largest component of the BOTB. The BOTB's full asset mix is shown later in this article. Overall the total equity exposure has reduced slightly to 64%,

Below I list this month's selection in full with the 15 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 Global Real Estate Share	Property Other	GB00B7MR5W47	Higher risk
abrdn High Yield Bond	Sterling High Yield	GB00B79RR984	Lower risk
Artemis UK Smaller Companies	UK Smaller Companies	GB00B2PLJL57	Higher risk
Aviva Inv Global Equity Income	Global Equity Income	GB0030441918	Medium risk
AXA Framlington Biotech	Specialist	GB00B784NS11	Higher risk
AXA Global High Yield	Sterling High Yield	GB00B29NGF01	Lower risk
Baillie Gifford High Yield Bond	Sterling High Yield	GB0030816606	Lower risk
Barclays Wealth Wealth Global Markets 5	Flexible Investment	GB00B4YPY060	Medium risk
CT High Yield Bond	Sterling High Yield	GB0008371014	Lower risk
Fidelity Global Dividend	Global Equity Income	GB00B7778087	Medium risk
FSSA Indian Subcontinent All-Cap	India/Indian Subcontinent	GB00BDG1BM66	Higher risk
Invesco High Yield (UK)	Sterling High Yield	GB00B3RW7649	Lower risk
Jupiter Asian Income	Asia Pacific Excluding Japan	GB00BZ2YML94	Higher risk
Jupiter China	China/Greater China	GB00B1DTDX49	Higher risk
Jupiter Merian Asia Pacific	Asia Pacific Excluding Japan	GB00B1XG8C90	Higher risk
L&G Global Technology Index Trust	Technology & Technology Innovation	GB00B0CNH163	Higher risk
L&G Strategic Bond	Sterling Strategic Bond	GB00B1TWMW95	Lower risk
M&G Global Dividend	Global Equity Income	GB00B46J9127	Medium risk
Man GLG Absolute Value	Targeted Absolute Return	GB00BF1X8084	Lower risk
Man GLG High Yield Opportunities	Sterling High Yield	GB00BJK3W057	Lower risk
Ninety One UK Smaller Companies	UK Smaller Companies	GB00B00LDP80	Higher risk
Premier Miton Global Infrastructure Income	Infrastructure	GB00BD3H9L21	Medium risk
Premier Miton UK Multi Cap Income	UK Equity Income	GB00B41NHD71	Medium risk
Schroder High Yield Opportunities	Sterling High Yield	GB00B83RDY83	Lower 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
Troy Asset Management Ltd Trojan Global Income	Global Equity Income	GB00BD82KP33	Medium risk
UBS S&P 500 Index	North America	GB00BMN91T34	Medium risk
Vanguard FTSE Developed World ex-UK Equity Index	Global	GB00B59G4Q73	Medium risk
Vanguard US Equity Index	North America	GB00B5B71Q71	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
Man GLG High Yield Opportunities	Sterling High Yield	GB00BJK3W057	Lower risk
Baillie Gifford High Yield Bond	Sterling High Yield	GB0030816606	Lower risk
L&G Strategic Bond	Sterling Strategic Bond	GB00B1TWMW95	Lower risk
AXA Global High Yield	Sterling High Yield	GB00B29NGF01	Lower risk
Invesco High Yield (UK)	Sterling High Yield	GB00B3RW7649	Lower risk
Schroder High Yield Opportunities	Sterling High Yield	GB00B83RDY83	Lower risk
CT High Yield Bond	Sterling High Yield	GB0008371014	Lower risk
abrdn High Yield Bond	Sterling High Yield	GB00B79RR984	Lower risk
Thesis TM Tellworth UK Select	Targeted Absolute Return	GB00BNY7YM73	Lower risk
Man GLG Absolute Value	Targeted Absolute Return	GB00BF1X8084	Lower risk
Aviva Inv Global Equity Income	Global Equity Income	GB0030441918	Medium risk
M&G Global Dividend	Global Equity Income	GB00B46J9127	Medium risk
Fidelity Global Dividend	Global Equity Income	GB00B7778087	Medium risk
Barclays Wealth Wealth Global Markets 5	Flexible Investment	GB00B4YPY060	Medium risk
UBS S&P 500 Index	North America	GB00BMN91T34	Medium risk
Vanguard US Equity Index	North America	GB00B5B71Q71	Medium risk
Premier Miton Global Infrastructure Income	Infrastructure	GB00BD3H9L21	Medium risk
Premier Miton UK Multi Cap Income	UK Equity Income	GB00B41NHD71	Medium risk
Troy Asset Management Ltd Trojan Global Income	Global Equity Income	GB00BD82KP33	Medium risk
Vanguard FTSE Developed World ex-UK Equity Index	Global	GB00B59G4Q73	Medium risk
T. Rowe Price US Large Cap Growth Equity	North America	GB00BD5FHW12	Higher risk
abrdn Global Real Estate Share	Property Other	GB00B7MR5W47	Higher risk
L&G Global Technology Index Trust	Technology & Technology Innovation	GB00B0CNH163	Higher risk
Jupiter China	China/Greater China	GB00B1DTDX49	Higher risk
Ninety One UK Smaller Companies	UK Smaller Companies	GB00B00LDP80	Higher risk
Artemis UK Smaller Companies	UK Smaller Companies	GB00B2PLJL57	Higher risk
Jupiter Merian Asia Pacific	Asia Pacific Excluding Japan	GB00B1XG8C90	Higher risk
AXA Framlington Biotech	Specialist	GB00B784NS11	Higher risk
Jupiter Asian Income	Asia Pacific Excluding Japan	GB00BZ2YML94	Higher risk
FSSA Indian Subcontinent All-Cap	India/Indian Subcontinent	GB00BDG1BM66	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
Baillie Gifford China	China/Greater China	GB00B39RML74	Higher risk
FSSA Asia Focus	Asia Pacific Excluding Japan	GB00BWNGXJ86	Higher risk
Invesco Asian (UK)	Asia Pacific Excluding Japan	GB00B1W7HW60	Higher risk
Invesco Global Equity Income (UK)	Global Equity Income	GB00B3FD1Z66	Medium risk
Invesco Japanese Equity Advantage (UK)	Japan	GB00B3RS8478	Medium risk
Invesco UK Opportunities (UK)	UK All Companies	GB00B1W7HM62	Medium risk
Jupiter India	India/Indian Subcontinent	GB00B2NHJ040	Higher risk
L&G Global Emerging Markets Index	Global Emerging Markets	GB00B4KBDL25	Higher risk
L&G UK Equity Income	UK Equity Income	GB00B6HBD759	Medium risk
Man GLG Asia (ex Japan) Equity	Asia Pacific Excluding Japan	GB00BMCMVT34	Higher risk
Premier Miton Diversified Growth	Mixed Investment 40-85% Shares	GB00B8BJV423	Medium risk
Schroder Income	UK Equity Income	GB00B3PM1190	Medium risk
Schroder Strategic Bond	Sterling Strategic Bond	GB00B7FPS593	Lower risk
Schroder UK Smaller Companies	UK Smaller Companies	GB00B76V7Z98	Higher risk
Vanguard FTSE UK Equity Income Index	UK Equity Income	GB00B59G4H82	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% (20%)
• UK Fixed Interest 4% (5%)
• Alternatives 11% (9%) - includes absolute return strategies
• North American Equities 24% (8%)
• Emerging Market Equities 4% (13%)
• Asian Equities 4% (6%)
• European Equities 5% (5%)
• Japanese Equities 0% (4%)
• UK Equities 16% (24%)
• Cash 0% (0%)
• China Equities 3% (3%)
• Property Equities 3% (3%)
• Other International Equities 5% (0%)
• 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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