Fund sector reviews

Mixed and total return funds review – how have markets coped since Trump’s ‘Liberation Day’ tariffs?

‘Liberation Day’ was a bigger shock to markets than many expected, but since then things seem to have calmed. Let’s take a look at how markets have done since Trump’s tariffs.
Man checking stock market information on his phone in a coffee shop.jpg

Important information - This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

Trump’s ‘Liberation Day’ tariffs shook stock markets around the world.

However, since then markets have recovered well.

US and UK markets have reached record high after record high in the last few months.

Bond yields have moved around a little, but are broadly similar today as they were a few months back.

Here’s a look at which markets did best and worst over the last three months and the impact that’s had on mixed-asset funds.

This article isn’t personal advice. If you’re not sure whether an investment is right for you, ask for financial advice. Investments and any income they produce can fall as well as rise in value, so you could get back less than you invest. Past performance isn’t a guide to the future.

How have stock markets performed?

Stock market returns over the three months to the end of July have been strong, rebounding after the initial falls linked to the US tariff announcements.

The MSCI All Country World index, which reflects performance of global stock markets, rose 13.18%* over this period.

The US led the rebound, with the MSCI USA index returning 15.56% over the same period. Europe and Japan lagged though, returning 5.54% and 5.35% respectively.

Three months is a short time to consider performance and it’s not a surprise to see some different returns from regions as investors look to understand the implications of tariffs on global trade.

How have bonds performed?

Bond markets have been more subdued. Ongoing uncertainty about interest rates in the US is largely the cause, with inflation ticking up at the same time the labour market is cooling, meaning the Federal Reserve has decided to leave rates where they are.

The Bank of England cut rates by 0.25% at their latest meeting, which was expected by the market, so had little to no impact on bond prices.

The European Central Bank held rates at 2.15% in July, following seven consecutive cuts in a row since September 2024, signalling the potential end to their rate cutting cycle.

Under these circumstances, it isn’t a surprise to see the IA Sterling High Yield sector as the strongest performer over this short period. This has built on previous strong performance, meaning it remains the best performer over 12 months, having returned 8.60%*.

Index-linked gilts have continued to lag other types of bonds, with a small loss of 0.56% over the three months, taking 12-month returns to -8.64%.

How have mixed asset and total return funds performed?

Funds with more invested in shares have performed better over the past five years than those that invest more in bonds.

Funds in the IA Flexible Investment and IA Mixed Investment 40-85% Shares sectors performed best over this period because they generally invested more in shares.

The best-performing mixed asset sector over the last 12 months was the IA Flexible Investment sector, which returned 8.40%*.

The weakest-performing sector was the IA Mixed Investment 0-35% Shares sector – the average fund in this sector returned 5.31%*.

Performance of mixed asset and total return sectors over 12 months

Annual percentage growth

Jul 20 – Jul 21

Jul 21 – Jul 22

Jul 22 – Jul 23

Jul 23 – Jul 24

Jul 24 – Jul 25

IA £ High Yield

10.70%

-8.83%

4.12%

10.85%

8.60%

IA Flexible Investment

19.73%

-4.47%

2.31%

10.16%

8.40%

IA Mixed Investment 0-35% Shares

7.07%

-7.07%

-2.11%

7.63%

5.31%

IA Mixed Investment 20-60% Shares

13.26%

-5.42%

-0.02%

9.07%

6.74%

IA Mixed Investment 40-85% Shares

18.03%

-4.26%

1.52%

10.58%

8.14%

IA Targeted Absolute Return

6.88%

-0.47%

1.56%

8.34%

5.41%

IA UK Index Linked Gilt

1.35%

-20.24%

-21.79%

1.72%

-8.64%

MSCI Europe ex UK

26.38%

-6.51%

16.12%

10.99%

10.74%

MSCI Japan

18.62%

-1.71%

9.34%

16.80%

3.39%

MSCI AC World

26.26%

2.75%

7.34%

17.75%

12.97%

MSCI USA

29.99%

6.41%

7.00%

22.23%

13.52%

Past performance isn't a guide to future returns.
Source: *Lipper IM, to 31/07/2025.

How have our Wealth Shortlist funds performed?

Our Wealth Shortlist funds have enjoyed a wide range of outcomes over the past 12 months. But with different approaches and objectives, we don’t expect them to perform in the same way.

Remember, 12 months is a short time when looking at investment performance. Investments should be held for the long term – that’s at least five years.

Investing in these funds isn't right for everyone. Investors should only invest if the fund's objectives are aligned with their own, and there's a specific need for the type of investment being made. Investors should understand the specific risks of a fund before they invest, and make sure any new investment forms part of a diversified portfolio.

For more details on each fund and its risks, including charges, see the links to their factsheets and key investor information.

Baillie Gifford Managed

Baillie Gifford Managed was the strongest-performing Wealth Shortlist fund in this sector over the past 12 months. It returned 12.15%, above its IA Mixed Investment 40-85% peer group average of 8.14%.

The fund invests in shares, bonds, and cash, but with a focus on shares. The shares part of the fund tends to focus on developed markets like the US, UK, and Europe.

Over the last 12 months, shares added the most value. With the amount invested in shares, it’s expected that this will have the biggest impact on overall fund performance. US and UK shares added of the most value. Investments in bonds also gained in value over the last 12 months.

The manager can invest in emerging markets, high yield bonds and derivatives, all of which add risk if used.

In this episode of Hargreaves Lansdown’s meet the manager, Joseph Hill speaks to Iain McCombie, co-manager of the Baillie Gifford Managed fund.

Baillie Gifford Monthly Income

Baillie Gifford Monthly Income was the worst-performing Wealth Shortlist fund in the sector over the last 12 months – it returned 5.05%.

The managers aim to increase the income paid to investors by more than the increase in the consumer prices index (CPI – a measure of inflation) over the long term.

The fund focuses on providing a resilient income over time, meaning that while the income provided by this fund might not be the highest available, it can be expected to be more consistent.

It invests in a diversified set of shares, bonds and real assets (such as property). It’s investments in real assets are achieved through company shares though, meaning most of the fund is invested in shares.

While the fund performed positively over the last 12 months, the fund doesn’t have as much invested in US shares as many peers, which held back performance.

That said, investments in infrastructure, which provide diversification compared with mixed-asset funds that only invest in shares and bonds, contributed the most to performance over the year.

The managers can invest in emerging markets, high yield bonds and use derivatives, all of which add risk. The fund takes charges from capital, which can increase the amount of income paid, but reduces the potential for capital growth.

In this episode of Hargreaves Lansdown’s meet the manager, Joseph Hill is joined by Steven Hay, co-manager of the Baillie Gifford Monthly Income fund.

Annual percentage growth

Jul 20 – Jul 21

Jul 21 – Jul 22

Jul 22 – Jul 23

Jul 23 – Jul 24

Jul 24 – Jul 25

Baillie Gifford Managed

24.14%

-23.35%

5.55%

5.77%

12.15%

Baillie Gifford Monthly Income

13.98%

-3.67%

2.68%

6.40%

5.05%

IA Mixed Investment 40-85% Shares

18.03%

-4.26%

1.52%

10.58%

8.14%

Past performance isn't a guide to future returns.
Source: *Lipper IM, to 31/07/2025.
Important information - Please remember the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. This article is provided to help you make your own investment decisions, it is not advice. If you are unsure of the suitability of an investment for your circumstances please seek advice. No news or research item is a personal recommendation to deal.
Written by
Hal Cook
Hal Cook
Senior Investment Analyst

Hal is a part of our Fund Research team and is responsible for analysing funds and investment trusts in the Fixed Interest and Multi-Asset sectors.

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Article history
Published: 20th August 2025