The investment objective of the Balanced Fund is to maximise the total return to investors, by preserving and growing the real value of investors’ capital and income, placing an equal emphasis on the generation of income and on capital growth. More information is available in the fund's Key Investor Information Document.
Why invest in the Balanced Fund?
The Balanced Fund is designed as a complete portfolio, containing a regularly reviewed balance of different assets. It is internationally diversified, including holdings in smaller companies and emerging markets, which otherwise would be difficult and expensive for an individual to buy, particularly those with smaller sums to invest.
The fund has a long, public track record and – like all our investments – is managed according to our ethical principles.
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Ethical behaviour is not […] lip service to a limited range of external criteria.
It is a mindset.
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Experience suggests that better investment results arise from a long-term investment approach with a focus on quality. We seek companies with sustainable growth prospects, strong and established business models, sound balance sheets, and often a growing stream of dividends.
The fund's allocation to different assets and geographies is reviewed quarterly by all the senior investment staff. Our team also collaborates on stock selection and monitoring. We draw on a deep well of experience in different markets and cycles. We only invest directly, so we keep full control over every holding.
In September, we added Britannia Industries to the fund as part of our allocation to Emerging Market equities. Britannia is a leading biscuit manufacturer in India, also producing bread, cake and dairy products. It is a well-established brand in the region, and we expect it to benefit from increasing wealth among Indian consumers.
We exited our positions in two companies in December. Mahindra & Mahindra, an Indian manufacturer of tractors and light commercial and passenger vehicles, was sold following a strong recovery from COVID-19 lows. We felt that longer-term prospects were less attractive than Britannia Industries, especially since they face some significant internal restructuring. IPG Photonics, a manufacturer of fibre lasers used in a wide range of industrial processes, was also sold as it faced growing competition in its well-established markets.
Commentary updated on 24th February 2021.
Whose needs is this fund designed to meet?
Whilst the fund is suitable for most retail investors, it is not suitable for investors who require full capital protection. Investors should have a medium to long-term investment horizon (3-5 years) and accept that the value of their investment will fluctuate. The fund will however allow ready access to the investment.
How is the fund structured?
The fund is a UK UCITS authorised unit trust. This means that the manager must follow minimum standards, including holding a diversified portfolio, publishing clear guidance on charges and taking steps to safeguard investors' money. Its structure provides investors with certain institutional safeguards and simplicity of administration.
There are also tax considerations: individuals can defer incurring capital gains tax until units in the fund are sold, and the portfolio of underlying investments are managed without tax constraints.
The fund holds a diversified portfolio of direct investments, as shown on the chart below. Asset and geographic allocations are continually reviewed and adjusted, according to the relative risks and opportunities.
Emerging Markets (12%)
Target portfolio allocations as at 30th September 2021. Actual allocations may vary. To gain exposure to gold, the fund invests in exchange traded commodities (debt securities).
Total return on investment to 31st October net of charges and assuming re-investment of dividends
Source: McInroy & Wood other than the UK RPI (Office of National Statistics).
The graph shows the growth in an initial investment of £1,000 over the time period selected assuming reinvestment of income on the xd date. The table shows total return as a percentage in UK sterling including the reinvestment of income on the xd date.
The Annualised Return represents the average annual return of the fund over a set number of years. It is calculated using a geometric average which means that it captures the effects of compounding over the years.
You can assess how well the fund has performed against its objective to grow the real value of investors' capital and income by referring to the change in the UK Retail Price Index (RPI) over the same period.
Please note that the returns shown are historic and should not be taken as a guide to or guarantee of likely future returns. Please be aware that the value of investments and the income they generate may go down as well as up.
Current price per personal unit1
Change in price (+/-)
Historic dividend yield2
Minimum initial investment
Regular saving facility
£100 minimum monthly investment
Additional investment availability
ISA, JISA, SIPP
Ongoing charges figure
Fund launch date
23 February 1990
UK UCITS authorised unit trust
1 at 12 noon on 07/12/2021
2 Historic dividend yield reflects distributions declared over the past 12 months as a percentage of the unit price. You should remember that the price of units and the income from them may go down as well as up. Past performance should not be used as a guide to future performance.
1 A Legacy Class Unit (SEDOL 0554325 & ISIN GB0005543250) existed until the legacy class was closed on 21st December 2016. The Legacy Class Unit was the only class of unit until 1st January 2013 when it was replaced as the principal unit class by the Personal Class Unit. The Personal Class Unit is the only class of unit now available.
Individuals aged 18 or over who are investing in their own name may purchase units in non-ISA and ISA accounts. If your portfolio is to be held in joint names, the initial investment cannot be made online.
Existing investors may make further investments by telephone. Receipt of cleared funds by bank transfer is required before the order is accepted. Please note we cannot accept ISA investments by telephone. To invest, please call us on 01620 825 867. When placing your order the call will be recorded.
Invest by post
Print the required form then complete and post your application.
To make initial lump sum investments or set up regular savings