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 Acc3.8520.9132.81317.511.31Buy
AXA Defensive Distribution Z Acc3.7820.0030.49317.511.17Buy
AXA Distribution Z Acc6.3824.1839.09863.792.50Buy
AXA Ethical Distribution Z Acc10.7634.4052.45226.002.00Buy
AXA Framlington Managed Income Z Gross Acc8.4523.7452.89418.954.77Buy
AXA Framlington Managed Income Z Acc8.3120.7545.75418.954.30Buy
CF Canlife Managed 0%-35% C Acc GBP---27.512.13Buy
CF Canlife UK Equity and Bond Income C Acc GBP7.1534.7154.7982.043.95Buy
Consistent Unit Trust Acc1.2318.0131.0912.544.14Buy
Elite Balanced B GBP9.7433.3049.0024.650.32Buy
Elite Balanced C Acc GBP9.2031.3243.8624.65-Buy
Elite Income B Acc GBP7.6725.7623.7236.072.01Buy
Elite Income C Acc GBP7.1423.9123.6136.072.01Buy
F&C UK Equity Linked Gilt 2 Acc9.4457.5789.55190.111.00Buy
F&C UK Equity Linked Gilt 3 Acc9.4357.6389.99190.111.00Buy
Fidelity Moneybuilder Balanced Y Acc3.0224.1944.78617.923.17Buy
HSBC Monthly Income C Acc6.9524.4043.95164.864.40Buy
Jupiter Distribution I Acc5.0921.5537.401,012.172.60Buy
Jupiter Merlin Income Portfolio I Acc7.2924.0134.123,042.292.90Buy
Jupiter Monthly Income I Acc12.6440.5069.82165.564.60Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Defensive Distribution Z Gr Inc3.8220.8432.84317.511.32Buy
AXA Defensive Distribution Z Inc3.7319.9130.35317.511.18Buy
AXA Distribution Z Inc6.4124.1739.04863.792.54Buy
AXA Ethical Distribution Z Inc10.7934.4652.43226.002.03Buy
AXA Framlington Managed Income Z Gross Inc8.4323.7453.06418.955.51Buy
AXA Framlington Managed Income Z Inc8.2420.7945.75418.954.50Buy
CF Canlife Managed 0%-35% C Inc GBP---27.512.21Buy
CF Canlife UK Equity and Bond Income C Inc GBP7.0534.5955.8082.044.08Buy
Consistent Unit Trust Inc1.2718.0931.2312.544.14Buy
Elite Income B Inc GBP7.7825.9934.6936.072.03Buy
Elite Income C Inc GBP7.2423.7228.5936.072.05Buy
F&C High Income C Inc4.248.678.7476.454.90Buy
F&C UK Equity Linked Gilt 2 Inc9.3757.1488.62190.111.00Buy
Fidelity Moneybuilder Balanced Y Inc3.0224.1844.77617.923.88Buy
HSBC Monthly Income C Inc6.9024.3343.90164.864.32Buy
Jupiter Distribution and Growth I Inc11.0534.9058.78496.383.90Buy
Jupiter Distribution I Inc5.0921.5937.461,012.172.60Buy
Jupiter Merlin Income Portfolio I Inc7.2224.0234.143,042.292.90Buy
Jupiter Monthly Income I Inc12.7040.6070.11165.564.60Buy
Kames Ethical Cautious Managed B Inc6.7125.5352.41582.001.92Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Aberdeen Smaller Companies Income Trust PLC Ord 50p43.1765.97126.71-16.76329.18Buy
Acorn Income Ld Ord32.8784.89162.21-3.63483.57Buy
Acorn Income Ld RED ZDP 1P7.5716.1430.534.05141.76Buy
CQS New City High Yield Fund Limited Ord NPV12.7523.3141.905.0759.72Buy
City Merchants High Yield Trust Limited12.1030.3158.570.81197.16Buy
Henderson High Income Trust Ord7.7835.7679.43-1.35194.50Buy
JP Morgan Elect Managed Income13.4434.4568.27-3.29117.10Buy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Puma Vct 10 PLC Ord GBP0.0005-0.45-2.51-85.34-2.747.23VCT GeneralistBuy

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