TB Wise Multi-Asset Income

Investment Objective

The Fund aims (after deduction of charges) to provide:

Fund Attributes

Investor Profile

Key Details

Target Benchmark UK CPI
Comparator Benchmark (Sector) IA 40-85% Investment Sector
Launch date 3rd October 2005
Fund value 88 million (GBP)
Holdings 40
Historic yield 4.7%
Div ex dates First day of every month
Div pay dates Last day of following month
Valuation time 12pm
  1. Past performance is not a guide to the future and outperforming target benchmarks is not guaranteed.
  2. The historic yield reflects distributions over the past 12 months as a percentage of the price of the B share class as at 31st March 2022. Investors may be subject to tax on their distributions.

Share Class Details

 B Acc (Clean) B INC (Clean) W Acc (Institutional) W Inc (Institutional)
Sedol Codes B0LJ1M4 B0LJ016 BD386V4 BD386W5
ISIN Codes GB00B0LJ1M47 GB00B0LJ0160 GB00BD386V42 GB00BD386W58
Minimum Lump Sum £1,000 £1,000 £100 million £100 million
Initial Charge 0% 0% 0% 0%
IFA Legacy Trail Commission Nil Nil Nil Nil
Ongoing Charges Figure 0.94% 0.94% 0.69% 0.69%
  1. The Ongoing Charges Figure is based on the expenses incurred by the fund for the period ended 31 August 2021. The figure may vary year to year.
  2. Includes Investment Management Fee.

Dividend Information

Income Information

2006 1.82
2007 4.3
2008 5.03
2009 4.6
2010 4.22
2011 4.95
2012 5.29
2013 5.1
2014 5.35
2015 5.34
2016 5.49
2017 6.06
2018 6.87
2019 6.62
2020 6.09
2021 3.77
2022 5.69

Fund Ratings

Fund Commentary

Nervousness persisted for much of May, as investors continue to deal with ongoing monetary policy tightening in spite of economic data showing signs of slowing. At the same time the war in Ukraine shows little sign of reaching a near term resolution. Inflation continues to surprise on the upside with the US Consumer Price Index coming in ahead of expectations at 8.3% whereas in the UK, inflation hit 9%, its highest level for more than 40 years with soaring gas and electricity bills intensifying the cost-of-living crisis faced by households.

The rate of consumer price Inflation is almost double the rate the Bank of England expected only six months ago and explains the need to tighten monetary policy. In the US, the Federal reserve raised interest rates by 0.5% and Jerome Powell, the Fed Chair, reaffirmed the need to continue tightening monetary policy until there is clear and convincing evidence that inflation is coming back towards their longstanding 2% target. At the same time, the Bank of England also raised interest rates by a further 0.25% and the ECB President Lagarde said it was likely to exit negative rates by the end of September. Markets are concerned that this tightening cycle is happening too late and that the slowing GDP growth experienced in the first quarter of the year risks turning into a recession if monetary policy prioritises tackling inflation over supporting economic growth. Whilst the path for interest rates remains upwards, markets did draw some comfort over the month that the pace of change might not be as steep as initially feared. In the US, markets had begun to contemplate an interest rate rise of 0.75%, however, subsequent commentary from the Fed made this a more remote prospect and indicated that following two further 0.5% rate rises later this year, a pause could follow. The Bank of England also warned that the squeeze on household incomes could cause the economy to stall later in the year causing investors to pare back interest rate expectations. Markets remain in a skittish mood, however, oscillating between hope that inflation might now be peaking and nervousness that any positive economic news, such as continued tightness in the labour market and wage inflation, will put further pressure on central bankers to tighten monetary conditions. Elsewhere, economic data out of China for April demonstrated the negative impact its zero-Covid policy has wrought with retail sales down 11% from a year earlier and industrial production falling 3%. Export growth and real estate activity were also weak. Toward the end of the month markets welcomed the news that Covid cases were falling and that China had moved to a broad reopening of Shanghai. Moreover, in contrast to western economies, monetary policy was loosened and fiscal support measures were introduced.

Global equity markets struggled to make much progress with the UK a notable outlier, driven predominantly by the strong performance of its energy companies on the back of higher oil price. The Nasdaq Index of leading US technology companies extended its weak performance on the back of lacklustre results from bellweather names, such as Apple, Microsoft and Amazon. Traditional retailers, Target and Walmart also cited significant challenges demonstrating inflation is beginning to bite for consumers who are shifting away from discretionary items at the same time corporate labour costs are rising and supply chains remain blocked. Global bond markets were relatively flat over the month, however, UK bond markets remained under pressure.

In May, the TB Wise Multi-Asset Income Fund rose 0.3%, ahead of the IA 40-85% Investment Sector which fell 0.9%. Our equity funds performed well over the month given the value-bias within their process. Murray International, Schroder Global Equity, CC Japan Income and Growth, Temple Bar and Man GLG Income all performed strongly. By contrast, weakness at Aberdeen Asian Income and Middlefield Canadian was predominantly driven by discounts widening which we would expect to reverse over time. A similar issue affected our private equity holdings, BMO Private Equity and Princess Private Equity, as investor concerns towards growth stocks have risen. Whilst these trusts are exposed towards more highly rated technology sectors, we believe valuations have not been inflated to the same extent as the broader quoted technology index and the 20-30% discounts to net asset values provide a further cushion. Within our growth-exposed names, we were encouraged to see Mergers & Acquisitions activity emerge in the biotech sector following its recent weakness with International Biotech receiving a bid for migraine drugmaker, Biohaven, at a 79% premium to its last closing price from Pfizer. Our holdings with direct exposure to the oil price and indirect exposure via the power price performed strongly in spite of negative news around windfall taxes. Blackrock Energy and Resources performed notably well as did John Laing Environmental, which announced a 15% increase in its net asset value in the first quarter of the year. Our property holdings also delivered positive trading updates in the month, as investor demand for industrial property and retail parks lifted the net asset values at Standard Life Investment Property and Ediston Property. In addition, Empiric Student Property provided an encouraging update showing the recovery from Covid is gathering pace. With 2/3rds of the booking cycle for the upcoming academic year now passed, revenue occupancy of its rooms is running 6% ahead of the last pre-Covid academic year. On the negative side, Randall and Quilter fell 38% as investors blocked the takeover of the company at a price 85% higher than the closing price at the end of the month. The company reiterated both the need to raise capital as well as extremely strong trading in its programme management business.

During the month we added to our holding in Empiric Student property on weakness and took profits on several of our infrastructure holdings, which have performed strongly year to date as well as Impact Healthcare REIT where the market has been attracted to its defensive, long-term inflation linked revenue stream.