Evelyn Partners’ Core MPS has shifted money out of corporate bonds and US Treasuries and moved more cash into long-dated UK Gilts.
While the overall mix between equities, bonds and alternatives in the MPS is unchanged as a result of the April rebalance, allocations have been adjusted.
The bond funds sold down included Vanguard US Government Bond and M&G UK Inflation Linked Corporate Bond. L&G Short Dated Corporate Bond Index and Artemis Corporate Bond were fully exited. Money went into iShares Up to 10 Years Gilt Index and Vanguard UK Government Bond Index.
On the equities side, the MPS has trimmed down UK equities exposure in favour of Asian equities. This was achieved by selling down some of the L&G UK 100 index fund and Lindsell Train UK equity holdings in favour of Stewart Investors Asia Pacific.
See also: Professional investors targeting risk-on assets to meet retirement needs
Lead portfolio manager James Burns said: “The changes within the bond portion saw a new position initiated in longer-dated UK gilts through Vanguard UK Government Bond Index.
“The difference in yield between short-dated corporate bonds and sovereign yields in the seven to 10 year part of the UK curve is fairly neutral and the move away from corporate bonds will bring important downside protection to the portfolios.
“US Treasuries were also reduced in order to maintain diversification but to also reflect the possibility that US government bonds’ status as the ultimate safe haven assets may be called into question following President Trump’s recent tariff announcements,” he continued.
“Within the equity allocation, exposure to the UK was reduced in favour of Asia and Emerging Markets. We also introduced a new holding to the US equity sleeve of the portfolio – T. Rowe Price US Structured Research, which has a strong long-term track record of outperformance and comes at a very attractive cost level.”
See also: Majority of advisers interested in specialist IHT support
