Evelyn Partners’ Sustainable Managed Portfolio Service (MPS) team has sold down four funds in favour of three new holdings its latest rebalance.
The four sold funds were Vanguard US Government Bond Index (hedged); Brown Advisory Sustainable Total Return Bond; Trojan Ethical Income and SDCL Energy Efficiency Income Trust.
They have been replaced by three new funds: Vanguard UK Government Bond, iShares up to 10 Years Gilts Index, and M&G Global Sustain Paris Aligned.
The rebalance saw trades across all asset classes as the team repositioned the six portfolios for the year ahead.
See also: Rob Burdett to chair Beechtree Capital advisory committee
Genevra Banszky von Ambroz (pictured), lead manager of the sustainable MPS, said: “In fixed income, exposure to sovereign bonds was adjusted to reflect our preference for having nominal exposure in the UK, where a growth shock is more likely, and inflation-protected exposure in the US. iShares Up To 10 Years Gilts Index and Vanguard UK Government Bond Index funds were introduced to reflect this.
“Within our corporate bonds allocation, holdings in the TwentyFour Sustainable Total Return Bond Income and Aegon Global Short Dated Climate Transition Bond funds were increased.”
On the decision to sell Trojan Ethical Income in its entirety and take profits from CT Responsible Global Equity and Brown Advisory US Sustainable Growth, where US technology exposure is higher, the firm said the team decided to recycle the proceeds into core global, core US and thematic strategies.
Banszky von Ambroz added the team avoided adding materially to segments of the market where valuations reflect ‘particularly optimistic’ expectations of future earnings.
See more: Schroders CIO: DeepSeek AI disruption highlights need for resilient portfolios