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 Acc3.7317.6932.04318.041.65Buy
AXA Defensive Distribution Z Acc3.6516.8229.61318.041.42Buy
AXA Distribution Z Acc6.3317.7338.91864.632.58Buy
AXA Ethical Distribution Z Acc10.6526.3654.02221.272.00Buy
AXA Framlington Managed Income Z Gross Acc9.1622.8362.61405.104.81Buy
AXA Framlington Managed Income Z Acc8.7519.7254.59405.104.33Buy
CF Canlife UK Equity and Bond Income C Acc GBP7.1025.2756.0284.424.01Buy
Consistent Unit Trust Acc0.429.9834.0812.764.17Buy
Elite Balanced B GBP9.1923.6049.1723.570.22Buy
Elite Balanced C Acc GBP8.6521.7744.1323.57-Buy
Elite Income B Acc GBP6.4318.0024.6234.442.10Buy
Elite Income C Acc GBP5.9116.2524.6034.442.11Buy
F&C UK Equity Linked Gilt 2 Acc5.6448.7990.22180.741.10Buy
F&C UK Equity Linked Gilt 3 Acc5.6348.9390.57180.741.20Buy
FP Matterley Regular High Income C Acc3.7612.5926.0267.964.29Buy
Fidelity Moneybuilder Balanced Y Acc0.9720.0245.52637.443.18Buy
HSBC Monthly Income C Acc6.0018.7546.15167.684.17Buy
Jupiter Distribution I Acc4.7519.9738.74984.952.60Buy
Jupiter Merlin Income Portfolio I Acc6.5117.8335.153,042.292.90Buy
Jupiter Monthly Income I Acc14.8233.0476.62156.734.60Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Defensive Distribution Z Gr Inc3.7817.7032.06318.041.67Buy
AXA Defensive Distribution Z Inc3.6316.7629.49318.041.42Buy
AXA Distribution Z Inc6.3217.7238.76864.632.62Buy
AXA Ethical Distribution Z Inc10.8026.3754.02221.272.03Buy
AXA Framlington Managed Income Z Gross Inc9.1722.9262.77405.105.49Buy
AXA Framlington Managed Income Z Inc8.8119.7954.82405.104.50Buy
CF Canlife UK Equity and Bond Income C Inc GBP7.0326.0857.0884.424.14Buy
Consistent Unit Trust Inc0.4610.0034.1612.764.17Buy
Elite Income B Inc GBP6.4418.2135.6234.441.93Buy
Elite Income C Inc GBP5.9016.0829.6034.441.89Buy
F&C High Income C Inc4.785.318.3877.904.90Buy
F&C UK Equity Linked Gilt 2 Inc5.5748.3789.04180.741.10Buy
FP Matterley Regular High Income C Inc3.7612.6727.6567.964.34Buy
Fidelity Moneybuilder Balanced Y Inc0.9620.0045.49637.443.87Buy
HSBC Monthly Income C Inc6.0118.7646.18167.684.10Buy
Jupiter Distribution and Growth I Inc9.6525.5857.57499.313.70Buy
Jupiter Distribution I Inc4.7620.0438.79984.952.60Buy
Jupiter Merlin Income Portfolio I Inc6.5117.8235.173,042.292.90Buy
Jupiter Monthly Income I Inc14.9033.1476.97156.734.60Buy
Kames Ethical Cautious Managed B Inc4.5020.3555.02584.001.94Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Aberdeen Smaller Companies Income Trust PLC Ord 50p31.5142.81140.90-19.38312.59Buy
Acorn Income Ld Ord33.4750.85184.72-5.17468.73Buy
Acorn Income Ld RED ZDP 1P7.7514.5132.133.64140.87Buy
CQS New City High Yield Fund Limited Ord NPV13.2719.0347.865.4959.01Buy
City Merchants High Yield Trust Limited12.3326.8966.781.91195.40Buy
Henderson High Income Trust Ord8.6626.9282.320.35190.20Buy
JP Morgan Elect Managed Income13.7324.3468.788.64102.40Buy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Hargreave Hale AIM VCT 222.7923.9770.52114.05-4.435.50VCT AIM QuotedBuy
Hargreave Hale AIM VCT 1 Ord 1P16.4816.5972.7079.14-5.235.33VCT AIM QuotedBuy
Puma Vct 10 PLC Ord GBP0.0005-0.45-2.51-85.23-2.627.23VCT GeneralistBuy

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