UK Mixed Asset

Introduction to UK Mixed Asset 

A portfolio that holds a number of different asset classes should provide investors with a smoother, more predictable return over time. Managers of UK mixed asset portfolios will hold a blend of sterling-based equities, bonds, property, cash and alternatives, aiming to tilt the portfolio to those assets they believe are most likely to do well. However, they will always keep a balance in the portfolio to ensure diversification.

Once the asset allocation decision has been made, investment managers implement their views either by investing directly in the stock, bond or property markets, or by investing in other funds. Some managers only invest in their own in-house funds, others will use external funds and exchange traded products.

Mixed asset funds should provide a consistent year in, year out return, with few surprises. Investors would not expect to experience the volatility of, say, the stock market when investing in this type of fund. Mixed asset managers argue that delivering a return consistently, rather than shooting the lights out one year and then sliding the next, is important for compound growth over the long-term. Investors will often use mixed asset funds for one-stop-shop exposure to a broad range of asset classes.

The tax treatment of investments is subject to tax law and HMRC practice which are subject to change.

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Defensive Distribution Z Gr Acc6.9518.6531.37317.581.66Buy
AXA Defensive Distribution Z Acc6.7717.6828.96317.581.41Buy
AXA Distribution Z Acc9.9919.2440.21870.802.59Buy
AXA Ethical Distribution Z Acc14.9328.6856.60218.252.02Buy
CF Canlife UK Equity and Bond Income C Acc GBP11.8429.6161.4888.153.73Buy
Consistent Unit Trust Acc5.5313.6039.7912.773.82Buy
Elite Balanced B GBP11.3025.0952.4823.570.22Buy
Elite Balanced C Acc GBP10.7423.2247.3923.57-Buy
Elite Income B Acc GBP8.5219.0426.9634.472.10Buy
Elite Income C Acc GBP7.9817.2827.0134.472.11Buy
F&C UK Equity Linked Gilt 2 Acc12.4754.9190.14178.021.10Buy
F&C UK Equity Linked Gilt 3 Acc12.5055.1090.63178.021.10Buy
FP Matterley Regular High Income C Acc6.3213.3027.5667.724.27Buy
Fidelity Moneybuilder Balanced Y Acc5.5223.6148.83661.503.12Buy
HSBC Monthly Income C Acc9.9321.5749.98170.324.33Buy
Jupiter Distribution I Acc6.4420.9239.83984.952.60Buy
Jupiter Merlin Income Portfolio I Acc9.7920.5737.123,042.292.80Buy
Jupiter Monthly Income I Acc19.9233.8379.69156.734.60Buy
Kames Ethical Cautious Managed B Acc6.9622.3555.96599.001.86Buy
Kames Ethical Cautious Managed D Acc6.7421.6354.80599.001.67Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Defensive Distribution Z Gr Inc7.0018.6831.66317.581.68Buy
AXA Defensive Distribution Z Inc6.7717.6429.02317.581.41Buy
AXA Distribution Z Inc10.0319.2140.23870.802.63Buy
AXA Ethical Distribution Z Inc15.0228.6556.73218.252.05Buy
CF Canlife UK Equity and Bond Income C Inc GBP11.8030.0362.6288.153.85Buy
Consistent Unit Trust Inc5.5913.7039.9012.773.82Buy
Elite Income B Inc GBP8.4919.2238.1834.471.93Buy
Elite Income C Inc GBP7.9417.0832.1134.471.89Buy
F&C High Income C Inc5.595.308.2578.794.90Buy
F&C UK Equity Linked Gilt 2 Inc12.4254.5889.02178.021.10Buy
FP Matterley Regular High Income C Inc6.3213.3829.2267.724.27Buy
Fidelity Moneybuilder Balanced Y Inc5.5023.5948.80661.503.78Buy
HSBC Monthly Income C Inc9.9321.5550.05170.324.27Buy
Jupiter Distribution and Growth I Inc13.7027.7361.81499.313.70Buy
Jupiter Distribution I Inc6.4320.9839.86984.952.60Buy
Jupiter Merlin Income Portfolio I Inc9.7920.5637.153,042.292.90Buy
Jupiter Monthly Income I Inc20.0133.9680.07156.734.60Buy
Kames Ethical Cautious Managed B Inc6.9522.3055.88599.001.88Buy
Kames Ethical Cautious Managed D Inc6.7421.5954.71599.001.69Buy
L&G Distribution Trust I Inc7.1714.7037.0670.783.70Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Aberdeen Smaller Companies Income Trust PLC Ord 50p34.3936.12138.56-19.09302.18Buy
Acorn Income Ld Ord42.6250.29200.77-3.17461.62Buy
Acorn Income Ld RED ZDP 1P7.2213.5334.653.07140.44Buy
City Merchants High Yield Trust Limited14.5925.4869.880.52195.99Buy
Henderson High Income Trust Ord13.0927.7288.250.82189.70Buy
JP Morgan Elect Managed Income16.4826.4173.579.62102.40Buy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Hargreave Hale AIM VCT 220.0418.5866.81116.04-8.655.66VCT AIM QuotedBuy
Hargreave Hale AIM VCT 1 Ord 1P15.7015.0673.0778.32-4.885.37VCT AIM QuotedBuy
Puma Vct 10 PLC Ord GBP0.0005-0.45-2.51-85.22-2.617.23VCT GeneralistBuy

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