80-20 Investor Best of the Best Selection – September 2021 Update

Commentary

Of the 30 funds in August's BOTB, 16 funds have retained their place in September's selection. The chart below shows the performance of the BOTB (+3.1% during August) against a benchmark that is calculated using the respective sector averages for each fund in the BOTB and assuming the same asset mix. The BOTB also outperformed the sector average of comparable professionally managed multi-asset funds (which made 2.26%)

Every single fund within the BOTB selection finished in positive territory for the month of August, which is a great result. The table below shows the top performers within the BOTB for the month of August and it's pleasing to see Fidelity UK Smaller Companies in the list as I hold it in my own £50k portfolio. Liontrust India once again tops the chart.

Fund	% July return
Liontrust India	8.54
ES R&M UK Equity Smaller Companies	5.55
Fidelity UK Smaller Companies	5.1
ASI UK Real Estate Share	5.06
Schroder UK Dynamic Smaller Companies	4.97

 

The BOTB as a whole benefited from its increased equity exposure and looking at the new BOTB, the overall equity exposure has risen again from 65% to 67%, which is the highest for some time. The focus of the portfolio remains US, UK and European equities, while having almost no direct exposure to Asian equities (including Japan). Growth stock exposure remains as does the exposure to property equity funds after their continued strong performance (a beneficiary of the stagflation narrative). At the low-risk end of the selection, there remains an allocation to Targeted Absolute Return funds but also an increased exposure to mixed-asset funds which account for the BOTB's overall increased equity exposure.

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 seven years ago.

Below I list this month's selection in full with the 16 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.

September'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
Allianz Continental European	Europe Excluding UK	GB00B3Q8YX99	High risk
ASI UK Real Estate Share	Property Other	GB00B0XWNM59	High risk
ASI UK Smaller Companies	UK Smaller Companies	GB00B7FBH943	Medium risk
AXA Global Distribution	Mixed Investment 20-60% Shares	GB0008309063	Low risk
Baillie Gifford Diversified Growth	Targeted Absolute Return	GB00B3FD0Z91	Low risk
Baillie Gifford Multi Asset Growth	Targeted Absolute Return	GB00BY9C5Y31	Low risk
BM Brooks Macdonald Defensive Capital	Targeted Absolute Return	GB00B61MR835	Low risk
BMO North American Equity	North America	GB0030281405	Medium risk
CFP Castlefield Real Return	Targeted Absolute Return	GB00B12V1482	Low risk
Fidelity Emerging Europe Middle East and Africa	Specialist	GB00B87Z7808	High risk
Fidelity Global Property	Property Other	GB00B7K2NZ09	Medium risk
Fidelity UK Smaller Companies	UK Smaller Companies	GB00B7VNMB18	High risk
FTF Franklin UK Smaller Companies	UK Smaller Companies	GB00B7FFF708	High risk
Invesco High Yield (UK)	Sterling High Yield	GB00B3RW7649	Low risk
Liontrust Global Technology	Technology & Telecommunication	GB00BYXZ5N79	High risk
Liontrust India	Specialist	GB00B1L6DV51	High risk
Liontrust Sustainable Future Managed	Mixed Investment 40-85% Shares	GB0030030398	Medium risk
Marlborough European Multi-Cap	Europe Excluding UK	GB0001719730	High risk
Marlborough Multi-Cap Growth	UK All Companies	GB0005662787	Medium risk
Ninety One American Franchise	North America	GB00B1XFJ342	High risk
Premier Miton Diversified Cautious Growth	Mixed Investment 20-60% Shares	GB00BHNZ2P92	Low risk
Royal London Global Index Linked	Global Bonds	GB00B772RM82	Low risk
Royal London Sustainable Managed Growth Trust	Mixed Investment 0-35% Shares	GB00B8H7XS88	Low risk
Royal London Sustainable World Trust	Mixed Investment 40-85% Shares	GB00B882H241	Medium risk
Schroder Global Cities Real Estate	Property Other	GB00B1VPTY75	Medium risk
Schroder UK Dynamic Smaller Companies	UK Smaller Companies	GB0007220360	High risk
SVS Sanlam North American Equity	North America	GB0007655698	Medium risk
TB Saracen Global Income & Growth	Global Equity Income	GB00B5B35X02	Medium risk
Troy Asset Management Ltd Trojan Global Equity	Global	GB00B0ZJ5S47	Medium risk
VT Chelsea Managed Monthly Income	Mixed Investment 20-60% Shares	GB00BF0NMS52	Low risk

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

Here is September'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
AXA Global Distribution	Mixed Investment 20-60% Shares	GB0008309063	Low risk
Baillie Gifford Diversified Growth	Targeted Absolute Return	GB00B3FD0Z91	Low risk
Baillie Gifford Multi Asset Growth	Targeted Absolute Return	GB00BY9C5Y31	Low risk
BM Brooks Macdonald Defensive Capital	Targeted Absolute Return	GB00B61MR835	Low risk
CFP Castlefield Real Return	Targeted Absolute Return	GB00B12V1482	Low risk
Invesco High Yield (UK)	Sterling High Yield	GB00B3RW7649	Low risk
Premier Miton Diversified Cautious Growth	Mixed Investment 20-60% Shares	GB00BHNZ2P92	Low risk
Royal London Global Index Linked	Global Bonds	GB00B772RM82	Low risk
Royal London Sustainable Managed Growth Trust	Mixed Investment 0-35% Shares	GB00B8H7XS88	Low risk
VT Chelsea Managed Monthly Income	Mixed Investment 20-60% Shares	GB00BF0NMS52	Low risk
ASI UK Smaller Companies	UK Smaller Companies	GB00B7FBH943	Medium risk
BMO North American Equity	North America	GB0030281405	Medium risk
Fidelity Global Property	Property Other	GB00B7K2NZ09	Medium risk
Liontrust Sustainable Future Managed	Mixed Investment 40-85% Shares	GB0030030398	Medium risk
Marlborough Multi-Cap Growth	UK All Companies	GB0005662787	Medium risk
Royal London Sustainable World Trust	Mixed Investment 40-85% Shares	GB00B882H241	Medium risk
Schroder Global Cities Real Estate	Property Other	GB00B1VPTY75	Medium risk
SVS Sanlam North American Equity	North America	GB0007655698	Medium risk
TB Saracen Global Income & Growth	Global Equity Income	GB00B5B35X02	Medium risk
Troy Asset Management Ltd Trojan Global Equity	Global	GB00B0ZJ5S47	Medium risk
Allianz Continental European	Europe Excluding UK	GB00B3Q8YX99	High risk
ASI UK Real Estate Share	Property Other	GB00B0XWNM59	High risk
Fidelity Emerging Europe Middle East and Africa	Specialist	GB00B87Z7808	High risk
Fidelity UK Smaller Companies	UK Smaller Companies	GB00B7VNMB18	High risk
FTF Franklin UK Smaller Companies	UK Smaller Companies	GB00B7FFF708	High risk
Liontrust Global Technology	Technology & Telecommunication	GB00BYXZ5N79	High risk
Liontrust India	Specialist	GB00B1L6DV51	High risk
Marlborough European Multi-Cap	Europe Excluding UK	GB0001719730	High risk
Ninety One American Franchise	North America	GB00B1XFJ342	High risk
Schroder UK Dynamic Smaller Companies	UK Smaller Companies	GB0007220360	High 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
Artemis High Income	Sterling Strategic Bond	GB00B2PLJN71	Low risk
ASI Global Real Estate Share	Property Other	GB00B7MR5W47	Medium risk
Barclays Multi-Asset Cautious	Mixed Investment 0-35% Shares	GB00BD93Z723	Low risk
ES R&M UK Equity Smaller Companies	UK Smaller Companies	GB00B1DSZS09	Medium risk
FP Pictet Multi Asset Portfolio	Targeted Absolute Return	GB00BVYTTC41	Low risk
Fundsmith Equity	Global	GB00B4Q5X527	Medium risk
MI Chelverton UK Equity Income	UK Equity Income	GB00B1Y9J570	Medium risk
Premier Miton Defensive Growth	Targeted Absolute Return	GB00B832BD89	Low risk
Premier Miton Diversified Income	Mixed Investment 20-60% Shares	GB00BYPDV970	Low risk
Premier Miton Worldwide Opportunities	Flexible Investment	GB0031831133	Medium risk
Schroder UK Dynamic Absolute Return	Targeted Absolute Return	GB00B3N74T57	Low risk
Slater Recovery	UK All Companies	GB0031554248	Medium risk
T. Bailey Dynamic	Mixed Investment 20-60% Shares	GB00B1385S07	Low risk
VT De Lisle America	North America	GB00B3QF3G69	High 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 10% (8%)
• Alternatives 19% (24%) - includes absolute return strategies & some bond exposure
• UK Corporate Fixed Interest (i.e UK bonds) 4% (0%)
• Emerging Market Fixed Income 0% (0%)
• North American Equities 17% (13%)
• European Equities 7% (7%)
• Chinese Equities 0% (0%)
• Japanese Equities 0% (0%)
• Property 8% (8%)
• UK Equities 21% (21%)
• Gilts 0% (0%)
• Cash 0% (3%)
• Asian / Emerging market equities 3% (3%)
• Other international equities 11% (13%)
• 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 a FTSE 100 tracker fund (the black line) and 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 portfolio has outperformed the average managed fund and the market.

 

 

 

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