Quilter’s Wealthselect managed portfolio service has conducted an “ad-hoc rebalance” across its range.
Performance has been positive since the March rebalance, particularly the Quilter Investors Precious Metals Equity fund, sub-advised by BlackRock. This was primarily driven by the rise in price of physical gold.
In response, the team has sold some of the gold position to “lock in profits” and added to traditional fixed income and alternative holdings.
This move follows the last rebalance, which temporarily halted additional fixed income investments owing to concerns over potential inflationary pressures and the level of implied rate cuts.
There has been a significant shift in interest rate expectations since then as inflation in the US has proved more persistent that expected.
Portfolio manager Stuart Clark said: “The recent outperformance of Quilter Investors Precious Metals Equity fund, primarily investing in gold-related equities such as gold mining stocks, has been particularly pleasing.
“As part of our strategy, we believe it is an opportune moment to capitalise on these gains and reinforce the assets that have been lagging. This has seen us add back to traditional fixed income and alternatives within the portfolio.
“We feel this year an increased willingness to be nimble in repositioning the portfolios will be important to achieving the best client outcomes.”
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