Evelyn Partners made no changes to the overall mix between equities, bonds and alternatives in its Core Managed Portfolio Service April rebalance, but there were changes within the bond and equity allocations.
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 7-10yr 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. 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.”
