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

Commentary

Of the 30 funds in August's BOTB, 21 funds have retained their place in September's selection, which again is higher than normal and reflects a relatively strong performance during August. The chart below shows the average performance of the BOTB during August (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 well the average cautious managed fund (purple line) and the average managed fund with up to 85% equity exposure (grey line).

The top performing funds in August's BOTB are shown below and once again include those funds that typically have exposure to large cap US companies.

Fund	August 2023 % return
Royal London Global Equity	2.2
T. Rowe Price US Large Cap Growth Equity	1.63
FTF Franklin US Opportunities	1.32
FP Carmignac Global Equity Compounders	1.29
FTF Templeton Global Leaders	1.07

At the other end of the scale, European equities, emerging market equities and technology focused funds struggled - dragged lower by Chinese economic woes and a stronger US dollar. 

Fund	August 2023 % return
AXA Framlington Global Technology	-1.89
Invesco Emerging Markets ex China (UK)	-1.99
CT European Select	-2.51
Man GLG Continental European Growth	-3.38
Liontrust Global Technology	-4.19

Given the strong relative performance during August it is perhaps unsurprising that so many funds retained their place in the BOTB once again. It is partly down to strong performance of key funds but also a lack of opportunities elsewhere. In terms of asset mix (see the bottom of the article for the full breakdown) things remain mostly unchanged with the UK equities again being reduced, now to its lowest level for some time. However, this month does see a small increase in exposure to Japanese equities and a new allocation to emerging Asian equities. The selection's overall equity exposure has increased marginally from 59% from 62%, while the portfolio's bond exposure has reduced slightly. At the end of this article, you can find information on how the 80-20 Investor selection continues to outperform professional fund managers and the market since its launch nine years ago

Below I list this month's selection in full with the 21 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
abrdn High Yield Bond	Sterling High Yield	GB00B79RR984	Lower risk
Artemis SmartGARP European Equity	Europe Excluding UK	GB00B2PLJD73	Higher risk
AXA Framlington American Growth	North America	GB00B5LXGG05	Medium risk
AXA Framlington Global Technology	Technology & Technology Innovation	GB00B4W52V57	Higher risk
AXA Global High Yield	Sterling High Yield	GB00B29NGF01	Lower risk
AXA Global Short Duration Bonds	Sterling Strategic Bond	GB00BDFZQV30	Lower risk
AXA US Short Duration High Yield Bond	Global Bonds	GB00B59VLT43	Lower risk
CT European Select	Europe Excluding UK	GB0001529345	Higher risk
Fidelity American	North America	GB00B8GPC429	Medium risk
Fidelity Japan	Japan	GB00B882N041	Medium risk
FP Carmignac Global Equity Compounders	Global	GB00BMGLBK75	Medium risk
FTF Franklin US Opportunities	North America	GB00B7KCG406	Higher risk
Invesco Emerging Markets ex China	Global Emerging Markets	GB00B3RW8X82	Higher risk
Invesco Global Targeted Returns	Targeted Absolute Return	GB00B8CHD050	Lower risk
Lazard Emerging Markets	Global Emerging Markets	GB00B24F1G74	Higher risk
LF Morant Wright Nippon Yield	Japan	GB00B42MKS95	Medium risk
Liontrust Global Technology	Technology & Technology Innovation	GB00BYXZ5N79	Higher risk
M&G Short Dated Corporate Bond	Sterling Corporate Bond	GB0031110397	Lower risk
Man GLG Continental European Growth	Europe Excluding UK	GB00B0119487	Higher risk
Man GLG Sterling Corporate Bond	Sterling Corporate Bond	GB00BNLYQX62	Lower risk
MI Metropolis Value	Global	GB00B3LDLX86	Medium risk
Morgan Stanley Sustainable Fixed Income Opportunities Fund	Global Bonds	GB00BNKVP424	Lower risk
Royal London Global Equity Select	Global	GB00BF93W972	Medium 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
T. Rowe Price US Large Cap Growth Equity	North America	GB00BD5FHW12	Higher risk
TB Guinness Global Equity Income	Global Equity Income	GB00BNGFN776	Medium risk
Thesis TM Tellworth UK Select	Targeted Absolute Return	GB00BNY7YM73	Lower risk
Troy Asset Management Ltd Trojan Global Equity	Global	GB00B0ZJ5S47	Medium risk

September 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
abrdn High Yield Bond	Sterling High Yield	GB00B79RR984	Lower risk
AXA Global High Yield	Sterling High Yield	GB00B29NGF01	Lower risk
AXA Global Short Duration Bonds	Sterling Strategic Bond	GB00BDFZQV30	Lower risk
AXA US Short Duration High Yield Bond	Global Bonds	GB00B59VLT43	Lower risk
Invesco Global Targeted Returns	Targeted Absolute Return	GB00B8CHD050	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
Morgan Stanley Sustainable Fixed Income Opportunities Fund	Global Bonds	GB00BNKVP424	Lower risk
Royal London International Government Bond	Global Bonds	GB00B45XHL18	Lower risk
Thesis TM Tellworth UK Select	Targeted Absolute Return	GB00BNY7YM73	Lower risk
AXA Framlington American Growth	North America	GB00B5LXGG05	Medium risk
Fidelity American	North America	GB00B8GPC429	Medium risk
Fidelity Japan	Japan	GB00B882N041	Medium risk
FP Carmignac Global Equity Compounders	Global	GB00BMGLBK75	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
Royal London US Growth Trust	North America	GB0030038359	Medium risk
TB Guinness Global Equity Income	Global Equity Income	GB00BNGFN776	Medium risk
Troy Asset Management Ltd Trojan Global Equity	Global	GB00B0ZJ5S47	Medium risk
Artemis SmartGARP European Equity	Europe Excluding UK	GB00B2PLJD73	Higher risk
AXA Framlington Global Technology	Technology & Technology Innovation	GB00B4W52V57	Higher risk
CT European Select	Europe Excluding UK	GB0001529345	Higher risk
FTF Franklin US Opportunities	North America	GB00B7KCG406	Higher risk
Invesco Emerging Markets ex China	Global Emerging Markets	GB00B3RW8X82	Higher risk
Lazard Emerging Markets	Global Emerging Markets	GB00B24F1G74	Higher risk
Liontrust Global Technology	Technology & Technology Innovation	GB00BYXZ5N79	Higher risk
Man GLG Continental European Growth	Europe Excluding UK	GB00B0119487	Higher risk
Schroder Asian Discovery	Specialist	GB00B5ZS9V71	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
Baillie Gifford Emerging Markets Bond	Global EM Bonds - Local Currency	GB00B39RMP13	Lower risk
BNY Mellon Global Dynamic Bond	Targeted Absolute Return	GB00B8K10865	Lower risk
CT UK Growth and Income	UK All Companies	GB0001529675	Higher risk
FTF Templeton Global Leaders	Global	GB00B7K6LK38	Medium risk
IFSL Marlborough High Yield Fixed Interest	Sterling High Yield	GB00B03TN153	Lower risk
Invesco Global Equity Income	Global Equity Income	GB00B3FD1Z66	Medium risk
Liontrust Global Alpha	Flexible Investment	GB0031190555	Medium risk
Ninety One UK Special Situations	UK All Companies	GB00B1XFJS91	Higher risk
Schroder Strategic Credit	Sterling Strategic Bond	GB00BJZ2ZC09	Lower 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% (23%)
• UK Fixed Interest 0% (3%)
• Alternatives 12% (11%) - includes absolute return strategies
• North American Equities 27% (29%)
• Asian Emerging Market Equities 6% (0%)
• European Equities 8% (10%)
• Japanese Equities 6% (4%)
• UK Equities 5% (9%)
• Cash 5% (4%)
• China Equities 0% (0%)
• Other international equities 10% (7%)
• 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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