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

Commentary

Of the 30 funds in September's BOTB, 19 funds have retained their place in October's selection in a sign of consistency. The chart below illustrates the average performance of the BOTB during September (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 marginally outperformed both the UT Mixed Investment 20-60% Shares (purple line) and the UT Mixed Investment 40-85% (grey line).

The top-performing funds in September's BOTB are highlighted below, which includes Asian/emerging market assets as well as alternative assets (in the case of Thesis TM Tellworth UK Select).

Fund	September 2023 % return
LF Morant Wright Nippon Yield	4.72
Thesis TM Tellworth UK Select	2.78
Fidelity Japan	2.07
Lazard Emerging Markets	2.07
Man GLG Sterling Corporate Bond	1.1

At the other end of the scale, European equities and technology focused funds struggled once again. The former were hurt by fears of recession and further rate hikes in Europe while the latter was hit by a stronger US dollar. 

Fund	September 2023 % return
AXA Framlington American Growth	-2.65
FP Carmignac Global Equity Compounders	-3.02
CT European Select	-3.41
Liontrust Global Technology	-4.19
Man GLG Continental European Growth	-4.55

In terms of asset mix, UK Equities have seen a slight increase in exposure which perhaps isn't a surprise given that UK equities were among the best performing stock markets in September (the FTSE 100 was the only index to finish the month in positive territory). However, US equities remain the biggest allocation in the BOTB. The allocation to Japanese and Asian Emerging Market Equities has slightly increased, indicating a small pivot towards Eastern markets. There's also a modest uptick in Global Fixed Interest. Overall the total equity exposure has also increased marginally from 62% to 64%.

Below I list this month's selection in full with the 19 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.

October'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 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 High Yield	Sterling High Yield	GB00B29NGF01	Lower risk
AXA US Short Duration High Yield Bond	Global Bonds	GB00B59VLT43	Lower risk
CT High Yield Bond	Sterling High Yield	GB0008371014	Lower 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
Jupiter Merlin Growth Portfolio	Flexible Investment	GB0003629267	Medium risk
L&G Global 100 Index Trust	Global	GB00B0CNH056	Medium risk
Lazard Emerging Markets	Global Emerging Markets	GB00B24F1G74	Higher risk
LF Canlife Short Duration Corporate Bond	Sterling Corporate Bond	GB00BD0CNM97	Lower risk
LF Morant Wright Nippon Yield	Japan	GB00B42MKS95	Medium risk
Liontrust Global Technology	Technology & Technology Innovation	GB00BYXZ5N79	Higher risk
Liontrust India	India/Indian Subcontinent	GB00B1L6DV51	Higher risk
M&G Short Dated Corporate Bond	Sterling Corporate Bond	GB0031110397	Lower 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
Premier Miton Strategic Monthly Income Bond	Sterling Strategic Bond	GB00BMWVS110	Lower risk
Royal London Global Equity Select	Global	GB00BF93W972	Medium risk
Schroder Strategic Credit	Sterling Strategic Bond	GB00BJZ2ZC09	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 Equity	Global	GB00B0ZJ5S47	Medium risk
UBS US Equity	North America	GB00B7V68L26	Medium risk

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

Here is October'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 High Yield	Sterling High Yield	GB00B29NGF01	Lower risk
AXA US Short Duration High Yield Bond	Global Bonds	GB00B59VLT43	Lower risk
CT High Yield Bond	Sterling High Yield	GB0008371014	Lower risk
LF Canlife Short Duration Corporate Bond	Sterling Corporate Bond	GB00BD0CNM97	Lower risk
M&G Short Dated Corporate Bond	Sterling Corporate Bond	GB0031110397	Lower risk
Man GLG Sterling Corporate Bond	Sterling Corporate Bond	GB00BNLYQX62	Lower risk
Premier Miton Strategic Monthly Income Bond	Sterling Strategic Bond	GB00BMWVS110	Lower risk
Schroder Strategic Credit	Sterling Strategic Bond	GB00BJZ2ZC09	Lower risk
Thesis TM Tellworth UK Select	Targeted Absolute Return	GB00BNY7YM73	Lower risk
Artemis US Select	North America	GB00BMMV5105	Medium risk
Fidelity American	North America	GB00B8GPC429	Medium risk
Fidelity Japan	Japan	GB00B882N041	Medium risk
Jupiter Merlin Growth Portfolio	Flexible Investment	GB0003629267	Medium risk
L&G Global 100 Index Trust	Global	GB00B0CNH056	Medium risk
LF Morant Wright Nippon Yield	Japan	GB00B42MKS95	Medium 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
UBS US Equity	North America	GB00B7V68L26	Medium risk
Artemis SmartGARP European Equity	Europe Excluding UK	GB00B2PLJD73	Higher risk
AXA Framlington Global Technology	Technology & Technology Innovation	GB00B4W52V57	Higher risk
FTF Franklin US Opportunities	North America	GB00B7KCG406	Higher risk
Invesco Emerging Markets ex China (UK)	Global Emerging Markets	GB00B3RW8X82	Higher risk
Lazard Emerging Markets	Global Emerging Markets	GB00B24F1G74	Higher risk
Liontrust Global Technology	Technology & Technology Innovation	GB00BYXZ5N79	Higher risk
Liontrust India	India/Indian Subcontinent	GB00B1L6DV51	Higher risk
Man GLG Income	UK Equity Income	GB00B0117C28	Higher risk
Man GLG Undervalued Assets	UK All Companies	GB00BFH3NC99	Higher risk
T. Rowe Price US Large Cap Growth Equity	North America	GB00BD5FHW12	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 Framlington American Growth	North America	GB00B5LXGG05	Medium risk
AXA Global Short Duration Bonds	Sterling Strategic Bond	GB00BDFZQV30	Lower risk
CT European Select	Europe Excluding UK	GB0001529345	Higher risk
FP Carmignac Global Equity Compounders	Global	GB00BMGLBK75	Medium risk
Invesco Global Targeted Returns	Targeted Absolute Return	GB00B8CHD050	Lower risk
Man GLG Continental European Growth	Europe Excluding UK	GB00B0119487	Higher risk
Morgan Stanley Sustainable Fixed Income Opportunities Fund	Global Bonds	GB00BNKVP424	Lower risk
Royal London International Government Bond	Global Bonds	GB00B45XHL18	Lower risk
Royal London US Growth Trust	North America	GB0030038359	Medium risk
Schroder Asian Discovery	Specialist	GB00B5ZS9V71	Higher risk
TB Guinness Global Equity Income	Global Equity Income	GB00BNGFN776	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 24% (21%)
• UK Fixed Interest 0% (0%)
• Alternatives 8% (12%) - includes absolute return strategies
• North American Equities 27% (27%)
• Asian Emerging Market Equities 7% (6%)
• European Equities 5% (8%)
• Japanese Equities 7% (6%)
• UK Equities 10% (5%)
• Cash 4% (5%)
• China Equities 0% (0%)
• Other international equities 8% (10%)
• Commodities and Energy % (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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