Managed Portfolio Service (MPS)

Moderate Portfolio Fact Sheet - Income

Third 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 Moderate portfolio will seek, over time, to generate returns above the rate of inflation and should reflect a good proportion of the fluctuation in value of equity markets. Although varying over time depending on market sentiment, the portfolio will have no more than 70% held in equities, alongside an allocation to fixed income and alternatives to maintain diversification. This will potentially generate higher returns than a Cautious portfolio but comes at the expense of greater risk to capital.

Key Portfolio Information

Holdings:

Go to holdings

Yield Target:

4 - 4.5%

Management Fee:

0.75% per annum

Volatility Target:

40 - 60% (per annum) of global equities

Cumulative Performance Overview

Key Highlights:

Cumulative Growth: 36.51% since inception
Benchmark Comparison: 21.86% (ARC Sterling Balanced Index)

The model was launched 30/06/2024 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:

Quarter	RB MPS	ARC Balanced
Q4 2024	0.35%	0.71%
Q1 2025	-0.69%	-0.70%
Q2 2025	4.99%	2.70%
Q3 2025	2.84%	4.04%

Cumulative Performance:

Key:

Portfolio

Benchmark

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Market Commentary

Sector Performance:

Third quarter performance was positive at +2.8%, supported by strong performance in international equities, particularly those in North America. However, the fund underperformed its benchmark (+4.0%) due to an underweight allocation to US equities, where valuations remain stretched.

The top performers included the HSBC American Index (+10.2%), The North American Income Trust (+8.6%) and BNY Mellon Global Income (+5.9%). Additionally, all three global funds contributed positively over the period.

Fixed-Income holdings also performed well, with all funds generating positive returns. 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 PIMCO GIS Income (+2.4%).

On the downside, notable detractors included Gravis UK Listed Property (-6.7%) and Gravis UK Infrastructure Income (-3.5%), both of which continue to face headwinds in a higher interest rate environment. Sequoia Economic Infrastructure Income (-2.4%) was impacted by a broader sector-wide selloff, while Merchants Trust (-0.7%) saw its discount widen amid a structural shift away from UK equities.

Market Trends:

Political uncertainty is the theme of Q4.

In the US, the onset of a government shutdown, halting all but essential government spending, appears to have left markets unfazed, with equities continuing their upward trajectory.

Despite concerns around labour market weakness, and the delayed publication of employment data doing little to dent investor confidence, a more pressing issue lies in the potential fallout from spending cuts proposed by the current administration.

Domestically, attention turns to the upcoming November budget. The Chancellor, Rachel Reeves, needs to plug a sizeable shortfall in day-to-day public spending to remain compliant with her fiscal rules. Tax rises are all but inevitable, yet questions on the subject remain unanswered. At the recent Labour party conference, the Chancellor signalled a shift in tone, preparing the electorate for potentially manifestobreaking tax rises, as she stated, “the world has changed”.

Meanwhile, political gridlock in France is straining already stretched public finances. The resignation of Prime Minister Sebastien Lecornu, only 26 days after taking office, underscores the troubles inside the Fifth Republic. Questions surrounding Macron’s presidency are gaining traction, and bond markets are pricing in further uncertainty, with yields on French government debt climbing amid rising uncertainty.

Portfolio Changes:

No changes were made in the quarter, but the portfolio was rebalanced later in the period to realign holdings to their target weightings.

Our Holdings

All holdings in the MPS Moderate Portfolio are carefully selected to align with its investment objectives. Values may not add up to 100% due to rounding.

Asset Allocation

	Equities	55.00%
	Fixed Interest	30.00%
	Alternatives	9.00%
	Property	5.00%
	Cash	1.00%

Geographic Breakdown

	Global	37.00%
	UK	35.00%
	North America	15.50%
	Europe	9.00%
	Asia Pacific	2.50%

Top Ten Holdings

Top Ten Holdings	Target Portfolio Weight
JP Morgan Global Growth and Income	6.00%
HSBC American Index	6.00%
Guinness Global Equity Income	6.00%
Gresham House UK Multi Cap Income	5.00%
The North American Income Trust	5.00%
Gravis UK Listed Property	5.00%
BlackRock Continental European Income	5.00%
Merchants Trust	5.00%
BNY Global Income	5.00%
Edinburgh Investment Trust	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 Balanced Index?

The ARC Sterling Balanced Asset Private Client Indices is an average of the average performance of each contributing investment management firm, where the historic risk profile has been in the range of 40–60% 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.