Managed Portfolio Service (MPS)

Cautious Portfolio Fact Sheet - Income

Fourth Quarter 2025

This fact sheet provides an overview of the investment portfolio which is professionally managed by Redmayne Bentley. It is designed to give investors a clear summary of the portfolio’s key details, performance, and strategy.

Investment Objective

The Cautious Portfolio is designed for investors seeking steady growth with lower volatility. It targets a balanced return over the long term, blending equities, bonds, and alternative investments to manage risk while delivering returns. This portfolio is structured to preserve capital, making it suitable for risk-conscious investors.

Key Portfolio Information

Holdings:

Go to holdings

Yield Target:

4 - 4.5%

Management Fee:

0.75% per annum

Volatility Target:

0 - 40% (per annum) of global equities

Cumulative Performance Overview

Key Highlights:

Cumulative Growth: 22.74% since inception
Benchmark Comparison: 15.95% (ARC Sterling Cautious Index)

The model was launched 31/12/2024 with performance figures prior to this date simulated based on portfolio weights at the time of launch. It should be noted that simulated past performance is not a reliable indicator of future performance.

Performance is calculated net of our management fees. The performance below accounts for the Redmayne Bentley fee of 0.75% per annum.

Discrete Quarters:

	RB MPS	ARC Cautious
Q1 2025	0.07%	0.23%
Q2 2025	4.41%	1.97%
Q3 2025	1.41%	2.43%
Q4 2025	2.05%	1.80%

Cumulative Performance:

Key:

Portfolio

Benchmark

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Market Commentary

Sector Performance:

Fourth quarter performance was positive at +2.1%, supported by performance in domestic equities. Over the period, the portfolio outperformed its benchmark (+1.8%) due to an overweight allocation to UK equities.

Top performers included Merchants Trust (+7.8%), Vanguard FTSE All-Share Index (+6.4%) and BNY Mellon Global Income (+6.3%). Additionally, The North American Income Trust (+5.7%) and BlackRock Continental European Income (+5.2%) benefitted from US and European equity strength.

Fixed income holdings also performed well across the portfolio. The focus remained on short-to-medium term maturities, which offered an attractive risk/return profile in the current market environment given their limited interest rate sensitivity. The top performing fixed income allocation was Artemis Corporate Bond (+2.6%).

Gresham House UK Multi Cap Income detracted from performance during the period.

Market Trends:

Markets defied trade and geopolitical uncertainty in 2025 to deliver positive returns across regions. Despite elevated US tech valuations, earnings growth remains strong, though a rising reliance on debt-funded capex adds to bubble speculation.

Expected US interest rate cuts should support broader economic growth but weaken the dollar, benefitting emerging markets and commodities.

In Europe, monetary easing has ended as fiscal policy now becomes the focus, with German stimulus contrasting with French debt concerns. In the UK, fiscal pressure has eased after the November Budget, supporting lower bond yields while economic growth should be stimulated by expected rate cuts. However, the local elections in May are predicted to be difficult for the Labour government, which may have negative implications for fiscal discipline.

Portfolio Changes:

The UK sleeve was rebalanced through the sale of Gresham House UK Multi Cap Income and the addition of the Vanguard FTSE All Share Tracker.

Infrastructure holdings, Gravis UK Infrastructure Income and Sequoia Economic Infrastructure were exited in light of the yield opportunities in fixed income and weakening sector sentiment. Proceeds were reallocated to fixed income, split across iShares US TIPS 0-5 (+5.5%), Aegon High Yield Bond (+2.5%) and Royal London Short Duration Gilts (+2.0%).

US inflation-linked bonds offer a compelling opportunity given a lower hurdle for US real rates to outperform nominal rates relative to the UK. High yield exposure was added to preserve portfolio income, with improving market quality being supportive of tighter credit spreads.

Our Holdings

All holdings in the MPS Cautious Portfolio are carefully selected to align with its investment objectives, steady growth, lower volatility, and capital preservation. Values may not add up to 100% due to rounding.

Asset Allocation

	Fixed Interest	59.00%
	Equities	35.00%
	Property	5.00%
	Cash	1.00%

Geographic Breakdown

	Global	47.00%
	UK	39.50%
	North America	10.00%
	Europe	2.50%

Top Ten Holdings

Top Ten Holdings	Target Portfolio Weight
PIMCO GIS Income	7.00%
Royal London Short Duration Gilts	7.00%
Muzinich Enhancedyield Short Term	6.50%
Premier Miton Strategic Monthly Income	6.50%
iShare USD TIPS 0-5	5.50%
JP Morgan Global Growth & Income	5.50%
Artemis Corporate Bond	5.00%
BNY Mellon Global Income	5.00%
Guinness Global Equity Income	5.00%
Invesco Bond Income Plus	5.00%

Risks

Investments and income arising from them can fall in value and you may get back less than you originally invested.
Past performance is not a reliable indicator of future results.

Contact Us

For more information, please contact our support team at mps@redmayne.co.uk

Key Features & Benefits

Maintain Stability:

Designed to monitor volatility while providing steady growth.

Diversification:

Exposure to multiple asset classes to manage risk.

Active Management:

Regular rebalancing to maintain portfolio stability.

Frequently asked questions

Who are ARC?

Asset Risk Consultants (ARC) are an independent financial consultant founded on the principle that improving the transparency of performance data would lead to better decision making.

What is a Benchmark?

A benchmark is a standard or point of reference against which the performance of an investment or financial instrument can be measured. It helps in evaluating performance.

ARC produce four benchmark indices composed of actual portfolio performance figures submitted by contributing discretionary investment management firms. The benchmarks cover four risk categories of Cautious, Balanced, Steady Growth, and Equity Risk, where the level of risk is assessed by the volatility of returns relative to those of global equities. Cautious risk portfolios are expected to show up to 40% of the volatility of world equities, Balanced between 40% and 60%, Steady Growth between 60% and 80%, and Equity Risk between 80% and 110% of world equities.

What is the ARC Sterling Cautious Index?

The ARC Sterling Cautious PCI is an average of the average performance of each contributing investment management firm, where the historic risk profile has been in the range of 0-40% of that experienced by world equity markets.

Terminology Explained

MPS - Our Managed Portfolio Service (MPS) is digital discretionary service, ideal for hands-off investors with £20k-£100k to invest. We manage your investments for you and in order to recommend one of our risk strategies (further information below) we collect details of your investing goals and attitude to risk.
Holdings - Holdings refer to the individual assets or securities that are included in the portfolio.
Yield Target - Yield target represents the level of income expected to be generated as a percentage of the overall portfolio value.
Volatility Target - A volatility target in investing refers to a specific level of annual volatility that a portfolio aims to achieve. Volatility refers to the degree of fluctuation in the price of an asset over a specific period.