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 Acc15.8019.4531.84328.352.17Buy
AXA Defensive Distribution Z Acc15.2318.1528.79328.351.94Buy
AXA Distribution Z Acc18.5018.5640.61922.292.75Buy
AXA Ethical Distribution Z Acc15.8820.5857.13209.122.52Buy
Architas MA Passive Growth Z Acc34.2841.1566.3749.481.78Buy
Architas MA Passive Growth A Acc33.8139.6363.5649.481.51Buy
CF Canlife UK Equity and Bond Income C Acc GBP14.6421.8857.48106.063.84Buy
Consistent Unit Trust Acc18.4016.9246.0937.143.85Buy
Elite Balanced B GBP15.3320.0150.4821.630.24Buy
Elite Balanced C Acc GBP14.7518.2445.8321.63-Buy
Elite Income B Acc GBP11.0916.3628.0033.711.97Buy
Elite Income C Acc GBP10.5416.6928.3633.711.95Buy
F&C UK Equity Linked Gilt 2 Acc40.3351.7689.28166.481.10Buy
F&C UK Equity Linked Gilt 3 Acc40.2951.8789.89166.481.10Buy
FP Matterley Regular High Income C Acc6.2111.4629.8862.914.55Buy
Fidelity Moneybuilder Balanced Y Acc10.6222.7252.10621.07-Buy
HSBC Monthly Income C Acc15.8816.8447.27173.444.36Buy
JPM UK Equity & Bond Income C Acc17.5920.4662.87148.573.19Buy
Jupiter Distribution I Acc9.5019.3842.82895.882.80Buy
Jupiter Merlin Income Portfolio I Acc13.8416.0138.703,160.602.90Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Defensive Distribution Z Gr Inc15.7619.5031.84328.352.20Buy
AXA Defensive Distribution Z Inc15.2218.0628.71328.351.95Buy
AXA Distribution Z Inc18.5118.5340.52922.292.80Buy
AXA Ethical Distribution Z Inc15.8520.6157.17209.122.56Buy
CF Canlife UK Equity and Bond Income C Inc GBP14.6422.4658.63106.063.96Buy
Cavendish UK Balanced Income B Inc19.3421.5380.2448.074.50Buy
Consistent Unit Trust Inc18.4216.9846.1437.143.85Buy
Elite Income B Inc GBP11.0715.8638.9933.711.99Buy
Elite Income C Inc GBP10.4713.8133.5233.711.97Buy
F&C High Income C Inc7.982.506.4283.704.80Buy
F&C UK Equity Linked Gilt 2 Inc40.1651.2887.76166.481.10Buy
FP Matterley Regular High Income C Inc6.2211.5331.5662.914.59Buy
Fidelity Moneybuilder Balanced Y Inc10.6122.7152.09621.073.90Buy
HSBC Monthly Income C Inc15.9016.7947.33173.444.42Buy
JPM UK Equity & Bond Income C Inc17.5720.4862.98148.573.26Buy
Jupiter Distribution and Growth I Inc14.3721.0461.60500.673.70Buy
Jupiter Distribution I Inc9.5519.4642.87895.882.80Buy
Jupiter Merlin Income Portfolio I Inc13.8316.0238.693,160.603.00Buy
Jupiter Monthly Income I Inc18.1529.2477.39136.874.50Buy
Kames Ethical Cautious Managed B Inc7.2816.4760.20580.001.98Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Aberdeen Smaller Companies Income Trust PLC Ord 50p1.84-0.98129.91-23.98269.00Buy
Acorn Income Ltd Ord6.2313.23192.63--Buy
Acorn Income Ltd ZDP 1P5.7915.4235.321.29137.60Buy
City Merchants High Yield Trust Limited16.0021.9967.700.85190.88Buy
Crystal Amber47.4446.38181.72-3.22218.02Buy
Henderson High Income Trust Ord14.2822.2596.55-1.05185.20Buy
JP Morgan Elect Managed Income14.6319.6969.656.39101.51Buy

VCTs

Name1 Year (%)3 Years (%)5 Years (%)NAVDiscountNDYSector
Hargreave Hale AIM VCT 26.0517.9157.31--5.96VCT AIM QuotedBuy
Hargreave Hale AIM VCT 1 Ord 1P5.0814.8471.15--5.59VCT AIM QuotedBuy
Puma Vct 10 PLC Ord GBP0.0005-----6.74VCT Generalist Pre QualifyingBuy

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