Evelyn Partners has increased its fixed income allocation by adding three new holdings to its range.
The rebalance of its portfolios is likely to reduce the risk to investors, said James Burns, manager of the Evelyn Partners Active MPS.
The team has increased its allocation to fixed income on the back of yields available on government and corporate bonds continuing to look attractive. The move came as the team reduced its overweight to equities.
Burns said: “Most significantly, the exposure to US government bonds hedged back to sterling was generally increased across the range as we believe that the US is close to a peak in its interest rate cycle.
"We would expect these bonds to provide good risk-off protection for the portfolios should the macro-economic picture deteriorate.
“The reduction in equities does not reflect a particularly negative outlook, rather an acknowledgement that there is more uncertainty for risk assets and that it was prudent to trim our long-held overweight position. Changes were varied across the range with the only consistent theme being a reduction in the UK exposure.”
This rebalance saw the following new holdings added to the range:
- GQG US Equity
- INPP
- Federated Hermes Asia Pacific ex-Japan
tara.o'connor@ft.com
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