As explained in May's monthly newsletter, by the end of May equity investors were left wondering whether the bond market was right all along. Ultimately May will be remembered as the month that Trump escalated the trade war with China and then started a new one with Mexico. This sparked an equity market sell-off (and stocks endured their worst May since 2010). With such a turnaround in fortunes it's perhaps unsurprising that only 11 funds from last month's list of 30 remain the same. Having said that most of those that didn't make it only just missed out and remain in the BFBS tables.
Within the BOTB, bond funds and equity funds containing bond proxies outperformed. The BOTB's cautious equity exposure also aided its outperformance. As a whole the BOTB was down 1.52% versus -1.73% for the average fund in the Mixed Investment 40-85% Shares sector.
From last month's BOTB selection, the best performers during May were Standard Life Investments Emerging Market Debt, Fidelity Global Property and Newton Real Return which made 3.44%, 2.85% and 1.46% respectively.
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