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 Acc16.0319.9636.14327.632.07Buy
AXA Defensive Distribution Z Acc15.7318.8433.31327.631.83Buy
AXA Distribution Z Acc18.3420.1647.76904.782.86Buy
AXA Ethical Distribution Z Acc19.2927.3364.12217.832.45Buy
CF Canlife UK Equity and Bond Income C Acc GBP17.6427.8771.2089.563.76Buy
Consistent Unit Trust Acc17.0014.1151.2612.843.77Buy
Elite Balanced B GBP16.8824.3253.8722.930.22Buy
Elite Balanced C Acc GBP16.2922.4848.8722.93-Buy
Elite Income B Acc GBP12.8517.9828.8233.821.89Buy
Elite Income C Acc GBP12.2816.2328.9633.821.88Buy
F&C UK Equity Linked Gilt 2 Acc38.3355.36113.01176.241.20Buy
F&C UK Equity Linked Gilt 3 Acc38.3255.48113.61176.241.20Buy
FP Matterley Regular High Income C Acc8.5312.8132.5664.294.36Buy
Fidelity Moneybuilder Balanced Y Acc14.4024.2158.72640.753.10Buy
HSBC Monthly Income C Acc16.7719.4758.81174.064.02Buy
Jupiter Distribution I Acc9.8920.8045.88956.602.70Buy
Jupiter Merlin Income Portfolio I Acc15.5618.7443.883,094.542.90Buy
Jupiter Monthly Income I Acc20.9633.3481.27149.274.70Buy
Kames Ethical Cautious Managed B Acc9.1122.2464.65588.001.85Buy
Kames Ethical Cautious Managed D Acc8.8921.5263.48588.001.66Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Defensive Distribution Z Gr Inc15.9919.9236.11327.632.10Buy
AXA Defensive Distribution Z Inc15.6718.7233.19327.631.84Buy
AXA Distribution Z Inc18.2920.1547.62904.782.91Buy
AXA Ethical Distribution Z Inc19.2827.3064.13217.832.50Buy
CF Canlife UK Equity and Bond Income C Inc GBP17.6428.3372.4689.563.88Buy
Consistent Unit Trust Inc17.0114.1651.3112.843.77Buy
Elite Income B Inc GBP12.8618.1939.8833.821.93Buy
Elite Income C Inc GBP11.4715.2133.1733.821.89Buy
F&C High Income C Inc6.683.759.1180.304.90Buy
F&C UK Equity Linked Gilt 2 Inc38.2154.87111.81176.241.10Buy
FP Matterley Regular High Income C Inc8.5312.8834.2864.294.40Buy
Fidelity Moneybuilder Balanced Y Inc14.4124.2258.73640.753.73Buy
HSBC Monthly Income C Inc16.8419.5858.89174.064.00Buy
Jupiter Distribution and Growth I Inc17.3026.2772.92496.163.70Buy
Jupiter Distribution I Inc9.9020.8645.92956.602.70Buy
Jupiter Merlin Income Portfolio I Inc15.5618.7443.893,094.542.90Buy
Jupiter Monthly Income I Inc19.2931.5479.00149.274.70Buy
Kames Ethical Cautious Managed B Inc8.0821.0463.02588.001.87Buy
Kames Ethical Cautious Managed D Inc7.9620.4562.00588.001.68Buy
L&G Distribution Trust I Inc11.3514.7242.7872.104.00Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Aberdeen Smaller Companies Income Trust PLC Ord 50p25.3725.93146.48-19.18298.19Buy
Acorn Income Ld Ord22.7831.52213.11-10.69480.36Buy
Acorn Income Ld RED ZDP 1P7.2217.3336.563.75139.52Buy
City Merchants High Yield Trust Limited18.5226.1874.522.27194.09Buy
Crystal Amber50.1962.01191.91-3.35242.12Buy
Henderson High Income Trust Ord21.6531.25108.723.86191.60Buy
JP Morgan Elect Managed Income20.7926.5984.509.33102.21Buy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Hargreave Hale AIM VCT 217.3718.0263.32118.23-5.695.38VCT AIM QuotedBuy
Hargreave Hale AIM VCT 1 Ord 1P14.6914.3672.9482.07-5.575.16VCT AIM QuotedBuy
Puma Vct 10 PLC Ord GBP0.0005-0.45--85.14-2.517.23VCT Generalist Pre QualifyingBuy

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