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 Acc13.0119.8334.09323.111.63Buy
AXA Defensive Distribution Z Acc12.7418.8331.51323.111.38Buy
AXA Distribution Z Acc14.7219.2543.48883.672.53Buy
AXA Ethical Distribution Z Acc16.9027.2358.62216.891.99Buy
CF Canlife UK Equity and Bond Income C Acc GBP16.4428.3767.6291.143.73Buy
Consistent Unit Trust Acc10.9512.1443.5612.793.83Buy
Elite Balanced B GBP18.7124.7654.9624.240.22Buy
Elite Balanced C Acc GBP18.1222.9249.8624.24-Buy
Elite Income B Acc GBP14.0719.1129.4934.012.10Buy
Elite Income C Acc GBP13.5017.3529.5734.012.11Buy
F&C UK Equity Linked Gilt 2 Acc30.9557.76101.34177.851.10Buy
F&C UK Equity Linked Gilt 3 Acc31.0057.99101.86177.851.10Buy
FP Matterley Regular High Income C Acc8.2213.1130.8066.474.32Buy
Fidelity Moneybuilder Balanced Y Acc12.4123.6755.73639.053.08Buy
HSBC Monthly Income C Acc14.5020.0153.90171.874.20Buy
Jupiter Distribution I Acc9.0721.5843.50983.412.60Buy
Jupiter Merlin Income Portfolio I Acc15.7419.7542.483,117.102.90Buy
Jupiter Monthly Income I Acc23.3633.0383.89155.304.60Buy
Kames Ethical Cautious Managed B Acc7.6821.2861.29593.001.82Buy
Kames Ethical Cautious Managed D Acc7.4720.5860.12593.001.63Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Defensive Distribution Z Gr Inc13.0720.0034.36323.111.64Buy
AXA Defensive Distribution Z Inc12.7918.8731.63323.111.38Buy
AXA Distribution Z Inc14.7919.3543.62883.672.56Buy
AXA Ethical Distribution Z Inc17.0027.2858.84216.892.00Buy
CF Canlife UK Equity and Bond Income C Inc GBP16.4228.8168.8391.143.85Buy
Consistent Unit Trust Inc10.9912.2343.6512.793.83Buy
Elite Income B Inc GBP14.0519.3040.9334.011.93Buy
Elite Income C Inc GBP13.4717.1334.7834.011.89Buy
F&C High Income C Inc6.373.967.9479.114.90Buy
F&C UK Equity Linked Gilt 2 Inc30.8657.39100.01177.851.10Buy
FP Matterley Regular High Income C Inc8.2213.1932.5066.474.32Buy
Fidelity Moneybuilder Balanced Y Inc12.4123.6455.69639.053.73Buy
HSBC Monthly Income C Inc14.5020.0353.98171.874.16Buy
Jupiter Distribution and Growth I Inc15.6225.8967.51509.203.70Buy
Jupiter Distribution I Inc9.0821.6243.54983.412.60Buy
Jupiter Merlin Income Portfolio I Inc15.7519.7542.473,117.102.90Buy
Jupiter Monthly Income I Inc23.4733.1684.26155.304.60Buy
Kames Ethical Cautious Managed B Inc7.6721.2461.20593.001.84Buy
Kames Ethical Cautious Managed D Inc7.4620.5360.02593.001.65Buy
L&G Distribution Trust I Inc9.6114.1140.5573.483.60Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Aberdeen Smaller Companies Income Trust PLC Ord 50p27.0322.04130.35-22.04298.89Buy
Acorn Income Ld Ord27.4047.38220.88-6.08473.83Buy
Acorn Income Ld RED ZDP 1P7.2214.8835.283.42139.96Buy
City Merchants High Yield Trust Limited18.6925.2773.791.92195.99Buy
Crystal Amber31.7943.35155.06-11.41227.46Buy
Henderson High Income Trust Ord19.3330.44103.091.71192.70Buy
JP Morgan Elect Managed Income18.6724.9376.958.99102.30Buy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Hargreave Hale AIM VCT 216.6116.8066.81116.77-9.225.66VCT AIM QuotedBuy
Hargreave Hale AIM VCT 1 Ord 1P14.0213.9476.9980.76-7.755.37VCT AIM QuotedBuy
Puma Vct 10 PLC Ord GBP0.0005-0.45-2.51-85.17-2.557.23VCT GeneralistBuy

Disclaimer

Interactive Investor does not endorse any particular product. If you are unsure about whether an investment is suitable for you please seek advice from a financial advisor.