In its latest re-balance of portfolios, the Evelyn Partners Core Managed Portfolio Service (MPS) team has increased its exposure to European equities at the expense of the UK and Japan*.
The Core MPS team has also increased exposure to US government bonds as the yields available continue to look attractive. They have added to a mixture of longer dated US Treasuries with currency exposure hedged back to sterling and US Treasury Inflation Protected Securities, again hedged back to sterling. This move was funded by a broad decrease in the alternative assets content, with the exposure to real assets, absolute return and gold all being trimmed.
Finally, the team exited all ETFs previously held in the portfolios and replaced them either with actively managed open-ended funds or passive trackers. The only listed holding following this rebalance is the Invesco Physical Gold ETC – an exchange traded commodity - that is held in all but the Maximum Growth portfolio. This has been retained as there no other structure available to hold this important diversifying asset class in and the team believe it is important to maintain an allocation in the portfolios.
The re-balance saw the team initiate five new holdings:
James Burns, lead manager of the Evelyn Partners Core MPS commented:
“With acute war risks receding the relative attractiveness of Europe has increased and is an area that has been running at a discount to the rest of the world. We are still positive on the prospects for UK and Japanese equities on valuation grounds but on a tactical basis believe there are more catalysts driving European ones ahead.
“The resultant mix in the portfolios enables us to take advantage of inflation continuing to decelerate in the short term whilst also providing protection should longer term inflation prove to be more persistent. Real assets, absolute return and gold all remain attractive in absolute terms, but we believe the relative attraction and diversification benefits favour a shift towards fixed income.
“We decided to exit all ETFs as we are conscious that most platforms that the Core MPS is available on have dealing charges associated with trading in listed vehicles such as these. Having recently reduced the management charge on the Core MPS to 0.20% and placed it as an ideal proposition for cost-sensitive clients, these extra charges are not helpful, particularly for those making regular withdrawals or subscriptions.
“Despite all the changes and exits of ETFs, the overall OCFs of the portfolios remain pretty much unchanged.”
Please see the accompanying re-balance note (which can be viewed here) for full details on the changes made to individual portfolios.
*allocations to Europe ex UK equities were increased on most portfolios. By way of example, the allocation increased from 5% to 6.75% on Balanced and 5.70% to 8% on Growth.
Evelyn Partners is the UK’s leading wealth management and professional services group, created following the merger of Tilney and Smith & Williamson in 2020. With £62.2 billion of assets under management (as at 30 June 2024), we are one of the largest UK wealth managers ranked by client assets and the seventh largest accountancy firm by ranked by Group fee income (source: Accountancy Age 50+50 rankings, 2023).
We have a network of offices in 30 towns and cities across the UK, the Republic of Ireland and the Channel Islands. Through our operating companies, we offer an extensive range of financial and professional services to individuals, family trusts, professional intermediaries, charities, and businesses.
Our purpose is to ‘place the power of good advice into more hands’, and we are uniquely well-placed to support clients with both their personal financial affairs and their business interests. Our personal wealth management services include financial planning, investment management, personal tax advice and, through Bestinvest, we have a multi award-winning online investment service for self-directed investors. For businesses, our wide range of services includes assurance and accounting, business tax advice, employee benefits, forensics, fund administration, fund governance, recovery and restructuring and transaction services.
For further information please visit: www.evelyn.com
By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. This briefing does not constitute advice nor a recommendation relating to the acquisition or disposal of investments. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication.
Issued by the Evelyn Partners group of companies (the “Group”) which comprises Evelyn Partners Limited and any subsidiary of Evelyn Partners Limited from time to time. Further details about the Group are available at: https://www.evelyn.com/legal-compliance-regulatory/registered-details
Some of our Financial Services calls are recorded for regulatory and other purposes. Find out more about how we use your personal information in our privacy notice.
Please complete this form and let us know in ‘Your Comments’ below, which areas are of primary interest. One of our experts will then call you at a convenient time.
*Your personal data will be processed by Evelyn Partners to send you emails with News Events and services in accordance with our Privacy Policy. You can unsubscribe at any time.
Your form has been successfully submitted a member of our team will get back to you as soon as possible.
Ireland 
USA 