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 Acc13.9018.5929.75322.202.18Buy
AXA Defensive Distribution Z Acc13.5217.2826.84322.201.94Buy
AXA Distribution Z Acc16.6317.5436.11899.562.76Buy
AXA Ethical Distribution Z Acc17.2422.4751.40209.902.51Buy
Architas MA Passive Growth Z Acc32.1645.4659.4750.381.76Buy
Architas MA Passive Growth A Acc31.7143.9856.7250.381.50Buy
CF Canlife UK Equity and Bond Income C Acc GBP16.3222.2053.4699.853.80Buy
Consistent Unit Trust Acc15.9213.9741.3637.023.91Buy
Elite Balanced B GBP17.6122.0445.6921.950.24Buy
Elite Balanced C Acc GBP17.0220.2441.1321.95-Buy
Elite Income B Acc GBP12.9616.6724.3734.111.97Buy
Elite Income C Acc GBP12.3914.9424.6634.111.95Buy
F&C UK Equity Linked Gilt 2 Acc34.6652.3887.85158.241.10Buy
F&C UK Equity Linked Gilt 3 Acc34.6552.5288.46158.241.10Buy
FP Matterley Regular High Income C Acc8.2412.0128.1362.314.43Buy
Fidelity Moneybuilder Balanced Y Acc10.7822.6451.96629.83-Buy
HSBC Monthly Income C Acc16.2415.3442.58172.423.71Buy
JPM UK Equity & Bond Income C Acc18.5620.1258.01152.303.34Buy
Jupiter Distribution I Acc9.2119.2340.92901.032.80Buy
Jupiter Merlin Income Portfolio I Acc14.7416.7835.403,131.212.90Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Defensive Distribution Z Gr Inc13.8818.6129.78322.202.22Buy
AXA Defensive Distribution Z Inc13.4517.2226.70322.201.96Buy
AXA Distribution Z Inc16.6417.5035.98899.562.81Buy
AXA Ethical Distribution Z Inc17.2322.4851.44209.902.56Buy
CF Canlife UK Equity and Bond Income C Inc GBP16.3222.5854.5999.853.98Buy
Cavendish UK Balanced Income B Inc19.7922.2572.4149.034.50Buy
Consistent Unit Trust Inc15.9514.0541.4437.023.91Buy
Elite Income B Inc GBP12.9716.8335.0634.111.99Buy
Elite Income C Inc GBP12.3714.7429.6434.111.97Buy
F&C High Income C Inc7.053.745.9183.174.80Buy
F&C UK Equity Linked Gilt 2 Inc34.5351.8886.44158.241.00Buy
FP Matterley Regular High Income C Inc8.2412.1429.7962.314.46Buy
Fidelity Moneybuilder Balanced Y Inc10.7822.6351.93629.833.86Buy
HSBC Monthly Income C Inc16.2315.3942.63172.423.71Buy
JPM UK Equity & Bond Income C Inc17.9219.4557.18152.303.44Buy
Jupiter Distribution and Growth I Inc14.4820.1456.26496.053.70Buy
Jupiter Distribution I Inc9.2719.3040.99901.032.80Buy
Jupiter Merlin Income Portfolio I Inc14.7316.7835.363,131.212.90Buy
Jupiter Monthly Income I Inc22.0731.0568.75141.574.40Buy
Kames Ethical Cautious Managed B Inc9.1316.5755.30580.002.01Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Aberdeen Smaller Companies Income Trust PLC Ord 50p20.628.22110.92-17.97271.86Buy
Acorn Income Ld Ord13.7722.66164.94--Buy
Acorn Income Ld RED ZDP 1P8.0519.2135.764.29138.31Buy
City Merchants High Yield Trust Limited20.9424.2962.951.39190.98Buy
Crystal Amber62.7657.05167.964.57218.51Buy
Henderson High Income Trust Ord17.7422.6885.710.38185.30Buy
JP Morgan Elect Managed Income17.6920.1567.417.12101.52Buy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Hargreave Hale AIM VCT 212.6014.3660.83--5.83VCT AIM QuotedBuy
Hargreave Hale AIM VCT 1 Ord 1P13.6512.6173.55--5.52VCT AIM QuotedBuy
Puma Vct 10 PLC Ord GBP0.00056.74----6.74VCT Generalist Pre QualifyingBuy

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