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 Acc-0.3011.0821.57294.350.85Buy
AXA Defensive Distribution Z Acc-0.2710.3819.80294.350.87Buy
AXA Distribution Z Acc1.4811.7827.12812.682.21Buy
AXA Ethical Distribution Z Acc1.1114.5033.92227.011.57Buy
AXA Framlington Managed Income Z Gross Acc4.4718.7940.87480.055.04Buy
AXA Framlington Managed Income Z Acc4.4016.4134.78480.054.99Buy
Consistent Unit Trust Acc-4.21-0.5417.0215.194.86Buy
Elite Balanced B GBP5.0915.4439.9924.520.32Buy
Elite Balanced C Acc GBP4.5613.7137.1824.52-Buy
Elite Income B Acc GBP2.8310.8621.3337.642.01Buy
Elite Income C Acc GBP2.329.2020.9037.642.01Buy
F&C UK Equity Linked Gilt 2 Acc3.4327.0267.93117.061.00Buy
F&C UK Equity Linked Gilt 3 Acc3.4827.1568.18117.061.00Buy
Fidelity Moneybuilder Balanced Y Acc-3.137.2027.16530.263.57Buy
HSBC Monthly Income C Acc2.069.9029.54154.113.59Buy
Jupiter Distribution I Acc-0.958.2725.28969.102.80Buy
Jupiter Merlin Income Portfolio I Acc2.9111.5022.272,660.133.00Buy
Jupiter Monthly Income I Acc3.7424.9047.26178.084.50Buy
Kames Ethical Cautious Managed B Acc2.6310.0736.98581.002.02Buy
Kames Ethical Cautious Managed D Acc2.439.4235.70581.001.82Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Defensive Distribution Z Gr Inc-0.2811.0521.57294.350.85Buy
AXA Defensive Distribution Z Inc-0.2710.2919.72294.350.87Buy
AXA Distribution Z Inc1.5011.8126.99812.682.24Buy
AXA Ethical Distribution Z Inc1.0814.5333.97227.011.59Buy
AXA Framlington Managed Income Z Gross Inc4.4418.7841.21480.055.26Buy
AXA Framlington Managed Income Z Inc4.4416.4835.37480.055.19Buy
Consistent Unit Trust Inc-4.22-0.5117.1015.194.86Buy
Elite Income B Inc GBP2.8311.0528.3237.642.03Buy
Elite Income C Inc GBP2.339.0524.7737.642.05Buy
F&C High Income C Inc2.994.956.7171.485.00Buy
F&C UK Equity Linked Gilt 2 Inc3.4226.8467.06117.060.90Buy
Fidelity Moneybuilder Balanced Y Inc-3.137.1827.14530.264.27Buy
HSBC Monthly Income C Inc2.149.9629.67154.113.81Buy
Jupiter Distribution and Growth I Inc-1.807.9136.15487.574.10Buy
Jupiter Distribution I Inc-0.938.3625.35969.102.80Buy
Jupiter Merlin Income Portfolio I Inc2.9311.5122.302,660.133.00Buy
Jupiter Monthly Income I Inc3.9725.2647.74178.084.50Buy
Kames Ethical Cautious Managed B Inc2.6310.0436.92581.002.05Buy
Kames Ethical Cautious Managed D Inc2.429.3935.64581.001.85Buy
L&G Distribution Trust I Inc1.548.9222.9360.643.10Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Aberdeen Smaller Companies Income Trust PLC Ord 50p30.2059.2480.55-14.29342.44Buy
Acorn Income Ld Ord10.1950.2076.21-6.07465.77Buy
Acorn Income Ld RED ZDP 1P4.6614.8829.764.85144.49Buy
CQS New City High Yield Fund Limited Ord NPV4.1722.8329.296.2557.79Buy
City Merchants High Yield Trust Limited4.4021.5442.762.26189.46Buy
Henderson High Income Trust Ord-0.3013.9948.13-0.49182.90Buy
JP Morgan Elect Managed Income Shs 0.001P9.0519.3151.01-1.91115.20Buy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Puma Vct 10 PLC Ord GBP0.0005--2.51-79.09-2.6415.58VCT GeneralistBuy

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