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Bonds have also caught the eye of the folk over at Waverton, as they have switched to neutral on fixed income, having been underweight, and to an underweight position on equities.

John Bellamy, the firm’s head of adviser solutions, says the move is in response to what Waverton sees as the rising risk of recession hurting the investment case for equities, and higher bond yields making the latter asset class more attractive. 

A signature dish of the Waverton portfolios in recent times has been the exposure to absolute return funds, but in its latest rebalancing it revealed it has reduced this exposure, though remains overweight, and will keep cash at 2 per cent.

In its balanced model, Waverton presently has 52 per cent in equity, which is slightly less than the 56 per cent which is the average for the balanced models in our database. 

Waverton's fixed income exposure is 20 per cent, which is lower than the 24 per cent average. It is in its exposure to real assets that they differentiate, with 14 per cent deployed there and 10 per cent in absolute return strategies. 

This collective exposure of 24 per cent is higher than the 19 per cent average exposure to these assets in our database.

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