St. James’s Place (SJP) has ‘strengthened defensive resilience’ across its multi-asset portfolios by increasing allocations to inflation‑linked sovereign bonds.
Exposure has been raised by 2-7% across the Polaris and Polaris Multi‑Index range, depending on the strategy and risk profile. The adjustments sit within a broadly unchanged overall sovereign bond allocation.
The firm said the changes build on positions introduced in late 2025 and reflects the investment team’s conviction in the long‑term structural role inflation‑linked bonds can play within defensive allocations.
The changes do not increase overall defensive exposure, but ‘refines its composition’.
On the equities side, SJP has increased exposure to small caps, with allocations rising by 2-8%, depending on objectives and risk profile.
The wealth manager said it considers small‑cap equities attractively valued relative to large‑caps, and offering broader market exposure at a time when major equity indices have become increasingly concentrated.
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The increase was largely funded by a reduction in large‑cap equities, particularly US.
SJP has also made tweaks to its InRetirement range, with equities allocations reduced by about 3%.
This rebalancing supports the long‑term objective of the strategies, which aim to generate sufficient returns to support withdrawals while limiting exposure to significant drawdowns.
Robin Ellis, director of multi‑asset portfolio management, said: “These adjustments reflect our continued focus on disciplined, long‑term portfolio construction.
“By refining defensive exposures, increasing diversification within equities and rebalancing where valuations and return prospects have evolved, we believe portfolios are better positioned to navigate uncertainty while remaining firmly focused on long‑term client outcomes.”
This story was originally published on Portfolio Adviser
