The Evelyn Partners Sustainable Managed Portfolio Service (MPS) team has added three new funds to its portfolios in its latest rebalance: Vanguard UK Government Bond, iShares up to 10 Years Gilts Index and M&G Global Sustain Paris Aligned.
The latest rebalance saw trades across all asset classes as the team repositioned the six portfolios for the year ahead. Four holdings were sold: Vanguard US Government Bond Index (hedged); Brown Advisory Sustainable Total Return Bond; Trojan Ethical Income and SDCL Energy Efficiency Income Trust.
Commenting on the changes, Genevra Banszky von Ambroz, lead manager of the Evelyn Partners 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.
“Mindful that the UK equity market continues to trade at a substantial discount to the US market (albeit with a distinct lack of a clear catalyst for this to reverse), but also recognising that exposure within the models is relatively high when compared with Evelyn Partners’ Tactical Asset Allocation view, holdings in Liontrust UK Ethical, Jupiter Responsible Income and Royal London Sustainable Leaders were reduced.”
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 team decided to recycle the proceeds into Core Global, Core US and Thematic strategies.
Genevra Banszky von Ambroz said the team avoided adding materially to segments of the market where valuations reflect particularly optimistic expectations of future earnings.
“Included within these changes were the introduction of the M&G Global Sustain Paris Aligned fund and an increase to Regnan Sustainable Water and Waste,” she added.
“Absolute Return and Gold positions were increased in our Alternatives allocation. SDCL Energy Efficiency Income Trust was sold in our Growth and Adventurous portfolios, with the proceeds used to buy Cordiant Digital Infrastructure, an existing holding in the lower risk models.”
Please see the re-balance note for full details on the changes made to individual portfolios.
