A total of 10 funds from August make it into September's selection, which is just less than half of them. Below I list this month's selection in full with the 13 funds that regained their place in black while the new additions are in green.
Just as last time, 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)
Fund name
Sector
ISIN Code
Risk level
Aberdeen - European High Yield Bond
Sterling High Yield
GB00B5968F40
Low risk
Argonaut - FP Argonaut European Alpha
Europe Excluding UK
GB00B4ZRCD05
High risk
Artemis - Pan-European Absolute Return
Targeted Absolute Return
GB00BMMV4J16
Medium risk
Aviva Inv - European Equity
Europe Excluding UK
GB0032494246
High risk
AXA - Framlington UK Smaller Cos
UK Smaller Companies
GB0030310857
Medium risk
BlackRock - European Absolute Alpha
Targeted Absolute Return
GB00B4Y62T40
Low risk
BlackRock - UK Absolute Alpha
Targeted Absolute Return
GB00B06L9G55
Medium risk
CF - Miton UK Value Opportunities
UK All Companies
GB00B8KV0M06
Medium risk
Fidelity - Japan Smaller Companies
Japan
GB0003860565
High risk
FP - Miton Undervalued Assets
UK All Companies
GB00B3BSKG91
Medium risk
Invesco Perpetual - European Opportunities
Europe Excluding UK
GB00B28J0N53
High risk
Kames - UK Smaller Companies
UK Smaller Companies
GB00B142FH03
Medium risk
L&G - Dynamic Bond
Sterling Strategic Bond
GB00B1TWMW95
Low risk
Man GLG - Continental Europe
Europe Excluding UK
GB00B0119370
High risk
Marlborough - High Yield Fixed Interest
Sterling High Yield
GB00B03TN153
Low risk
Old Mutual - UK Mid Cap
UK All Companies
GB00B1XG7999
Medium risk
Premier - Global Alpha Growth
Global
GB00B2QXTP49
High risk
Schroder - Absolute UK Dynamic
Targeted Absolute Return
GB00B3N74T57
Medium risk
Schroder - Monthly High Income
Sterling High Yield
GB0009505693
Low risk
Schroder - Strategic Credit
Sterling Strategic Bond
GB00B11DNZ00
Low risk
Schroder - UK Dynamic Smaller Companies
UK Smaller Companies
GB0031092942
Medium risk
Schroder - UK Smaller Companies
UK Smaller Companies
GB0007649535
Medium risk
Standard Life Investments - Ignis High Income Bond
Sterling High Yield
GB0009515957
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):
Fund name
Sector
ISIN Code
Risk Level
Aberdeen - European High Yield Bond
Sterling High Yield
GB00B5968F40
Low risk
BlackRock - European Absolute Alpha
Targeted Absolute Return
GB00B4Y62T40
Low risk
L&G - Dynamic Bond
Sterling Strategic Bond
GB00B1TWMW95
Low risk
Marlborough - High Yield Fixed Interest
Sterling High Yield
GB00B03TN153
Low risk
Schroder - Monthly High Income
Sterling High Yield
GB0009505693
Low risk
Schroder - Strategic Credit
Sterling Strategic Bond
GB00B11DNZ00
Low risk
Standard Life Investments - Ignis High Income Bond
Sterling High Yield
GB0009515957
Low risk
Artemis - Pan-European Absolute Return
Targeted Absolute Return
GB00BMMV4J16
Medium risk
AXA - Framlington UK Smaller Cos
UK Smaller Companies
GB0030310857
Medium risk
BlackRock - UK Absolute Alpha
Targeted Absolute Return
GB00B06L9G55
Medium risk
CF - Miton UK Value Opportunities
UK All Companies
GB00B8KV0M06
Medium risk
FP - Miton Undervalued Assets
UK All Companies
GB00B3BSKG91
Medium risk
Kames - UK Smaller Companies
UK Smaller Companies
GB00B142FH03
Medium risk
Old Mutual - UK Mid Cap
UK All Companies
GB00B1XG7999
Medium risk
Schroder - Absolute UK Dynamic
Targeted Absolute Return
GB00B3N74T57
Medium risk
Schroder - UK Dynamic Smaller Companies
UK Smaller Companies
GB0031092942
Medium risk
Schroder - UK Smaller Companies
UK Smaller Companies
GB0007649535
Medium risk
Argonaut - FP Argonaut European Alpha
Europe Excluding UK
GB00B4ZRCD05
High risk
Aviva Inv - European Equity
Europe Excluding UK
GB0032494246
High risk
Fidelity - Japan Smaller Companies
Japan
GB0003860565
High risk
Invesco Perpetual - European Opportunities
Europe Excluding UK
GB00B28J0N53
High risk
Man GLG - Continental Europe
Europe Excluding UK
GB00B0119370
High risk
Premier - Global Alpha Growth
Global
GB00B2QXTP49
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 Best of the Best list are listed below. Many of them remain in the Best funds by Sector selection:
Fund name
Sector
ISIN Code
Risk level
Aberdeen - High Yield Bond
Sterling High Yield
GB00B5968F40
Low risk
Aberdeen - Property Share
Property
GB00B0XWNM59
High risk
Argonaut - FP Argonaut European Enhanced Income
Europe Excluding UK
GB00B7M3XX95
Medium risk
AXA - Framlington American Growth
North America
GB0003509212
High risk
AXA - Framlington Global Technology
Technology & Telecom
GB0006598998
High risk
Cavendish - Technology
Technology & Telecom
GB00B60SMN24
High risk
FP - Apollo Multi Asset Balanced
Mixed Investment 20%-60% Shares
GB00B3FPF276
Low risk
GLG - Technology Equity
Technology & Telecom
GB00B0119H13
High risk
Henderson - Japan Opportunities
Japan
GB0007683203
High risk
JPM - Cautious Managed
Mixed Investment 0%-35% Shares
GB00B09RGK38
Low risk
Marlborough - Multi Cap Income
UK Equity Income
GB00B5L8VH15
Medium risk
Natixis - Loomis Sayles U.S. Equity Leaders
North America
GB00B8L3WZ29
High risk
Old Mutual - Bond 1
Sterling Strategic Bond
GB0033476184
Low risk
PFS - Chelverton UK Equity Income
UK Equity Income
GB00B1FD6244
Medium risk
PFS - TwentyFour Dynamic Bond
Sterling Strategic Bond
GB00B566LX69
Low risk
SF - Metropolis Value
Flexible Investment
GB00B3LDLX86
Medium risk
SJP - International Corporate Bond
Global Bonds
GB00B62VYF56
Low risk
Unicorn - UK Income
UK Equity Income
GB00B00Z1S94
Medium risk
Commentary
Well August was an incredible month in investing. Equity markets tumbled worldwide (due to concerns over China's economy) with most markets down around 10% or more before recovering slightly. Despite this the 80-20 Investor Best of the Best Selection managed to extend its outperformance over the market and fund managers. Part of the reason was that the selection had no exposure to emerging markets, Asia (excluding Japan) or China. In addition there was a move towards more defensive funds. That remains the case this month.
This month the portfolio has become more concentrated with 23 funds. The equity part of the portfolio now has a UK Smaller companies and European focus. Interestingly last month US equities and technology stocks entered the Best of the Best Selection but this month they narrowly missed out.
The noticeable feature is that a number of absolute return funds which use alternative strategies have entered the selection. It is the first time that so many absolute return funds have made the grade. There is certainly a reduction in risk when you look at the Best of the Best Selection this month, emphasised by the fact that there are only 6 high risk funds (usually there are up to 10).
Previously I've explained that our risk ratings take into account how funds are behaving in the current market conditions. With the market sell-off being sparked by concerns that Chinese economic growth is faltering european equities (particularly in Germany which exports to China) have been especially volatile. Therefore it comes as no surprise that the European equity funds are now classed as high risk plays.
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:
UK Equities 30% (22%)
Global Fixed Interest 13% (15%)
Alternative strategies 13% (0%)
European Equities 12% (11%)
UK Corporate Fixed Interest (i.e UK bonds) 11% (9%)
Japanese Equities 5% (3%)
North American Equities 3% (14%)
The remainder is made up of other international equities.
80-20 Investor Best of the Best fund performance – since inception August 2014
The 80-20 Investor Best of the Best fund selection is over a year old. As you know we've been tracking the Best of the Best Selection of funds, as picked by our unique algorithm, since August 2014. The chart below shows how someone who had bought the Best of the Best Selection each month would have fared (in green) versus the average managed fund (black) and the FTSE 100 (red). What is particularly pleasing is that the 80-20 Investor Best of the Best Selection outperformed even during the recent market sell-off.
All performance figures are net of fund charges. The material in any email, the MonetotheMasses.com website, associated pages / channels / accounts and any other correspondence are for general information only and do not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation. See full Terms & Conditions and Privacy Policy
Neither MoneytotheMasses.com/80-20 Investor nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.
Funds invest in shares, bonds, and other financial instruments and are by their nature speculative and can be volatile. You should never invest more than you can safely afford to lose. The value of your investment can go down as well as up so you may get back less than you originally invested.
Information provided by MoneytotheMasses.com/80-20 Investor is for general information only and not intended to be relied upon by readers in making (or not making) specific investment decisions.
Appropriate independent advice should be obtained before making any such decisions. Leadenhall Learning (owner of MoneytotheMasses.com/80-20 Investor) and its staff do not accept liability for any loss suffered by readers as a result of any such decisions.
The tables and graphs are derived from data supplied by Trustnet. All rights Reserved.
The post 80-20 Investor Best of the Best Selection – September 2015 Update appeared first on Money To The Masses.