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 Acc1.1713.4424.08299.330.88Buy
AXA Defensive Distribution Z Acc1.2212.5522.10299.330.88Buy
AXA Distribution Z Acc1.2812.8827.39813.582.27Buy
AXA Ethical Distribution Z Acc2.8017.6136.21225.301.53Buy
AXA Framlington Managed Income Z Acc5.6217.5736.36447.664.90Buy
AXA Framlington Managed Income Z Gross Acc5.6320.0442.70447.664.90Buy
Consistent Unit Trust Acc-2.892.2323.2312.804.64Buy
Elite Balanced B GBP5.8420.5640.7824.770.32Buy
Elite Balanced C Acc GBP5.3118.7735.5524.77-Buy
Elite Income B Acc GBP3.5914.3921.3037.442.01Buy
Elite Income C Acc GBP3.0712.7020.9837.442.01Buy
F&C UK Equity Linked Gilt 2 Acc2.4829.0773.56156.511.30Buy
F&C UK Equity Linked Gilt 3 Acc2.4429.1273.95156.511.30Buy
Fidelity Moneybuilder Balanced Y Acc-2.687.9631.39575.693.32Buy
HSBC Monthly Income C Acc1.4510.4030.13153.533.78Buy
Jupiter Distribution I Acc1.2310.9830.721,025.072.70Buy
Jupiter Merlin Income Portfolio I Acc3.5813.4325.472,876.323.10Buy
Jupiter Monthly Income I Acc6.1128.9151.69177.404.60Buy
Kames Ethical Cautious Managed B Acc2.7611.5740.51581.001.96Buy
Kames Ethical Cautious Managed D Acc2.5610.9239.30581.001.77Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Defensive Distribution Z Gr Inc1.1713.4124.10299.330.89Buy
AXA Defensive Distribution Z Inc1.2012.5622.02299.330.89Buy
AXA Distribution Z Inc1.3212.9327.35813.582.30Buy
AXA Ethical Distribution Z Inc2.7717.6136.20225.301.55Buy
AXA Framlington Managed Income Z Gross Inc5.5819.9943.07447.665.06Buy
AXA Framlington Managed Income Z Inc5.5817.5836.84447.665.08Buy
Consistent Unit Trust Inc-2.792.3223.3812.804.64Buy
Elite Income B Inc GBP3.5814.6030.2437.442.03Buy
Elite Income C Inc GBP3.0612.5425.8437.442.05Buy
F&C High Income C Inc2.125.426.3573.235.00Buy
F&C UK Equity Linked Gilt 2 Inc2.4428.8672.73156.511.20Buy
Fidelity Moneybuilder Balanced Y Inc-2.687.9531.38575.694.12Buy
HSBC Monthly Income C Inc1.5710.5130.30153.533.78Buy
Jupiter Distribution and Growth I Inc2.3814.5244.89487.574.10Buy
Jupiter Distribution I Inc1.2711.0830.821,025.072.70Buy
Jupiter Merlin Income Portfolio I Inc3.5813.4325.482,876.323.10Buy
Jupiter Monthly Income I Inc6.3929.3052.24177.404.80Buy
Kames Ethical Cautious Managed D Inc2.5510.8939.24581.001.79Buy
Kames Ethical Cautious Managed B Inc2.7511.5440.43581.001.98Buy
L&G Distribution Trust I Inc2.3810.3126.0864.093.10Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Aberdeen Smaller Companies Income Trust PLC Ord 50p32.3563.5692.12-11.81326.01Buy
Acorn Income Ld Ord21.7881.93110.76-2.52472.41Buy
Acorn Income Ld RED ZDP 1P5.7215.5330.906.23143.55Buy
CQS New City High Yield Fund Limited Ord NPV4.4920.2830.703.9257.16Buy
City Merchants High Yield Trust Limited-0.6016.1538.29-3.78191.22Buy
Henderson High Income Trust Ord-0.5811.6852.96-1.69180.80Buy
JP Morgan Elect Managed Income Shs 0.001P3.7518.7149.53-2.59111.90Buy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Puma Vct 10 PLC Ord GBP0.0005-6.74-2.51-85.21-9.6415.58VCT GeneralistBuy

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