USA Evelyn Partners Sustainable MPS team continues diversification in latest re-balance
In its latest re-balance of portfolios, the Evelyn Partners Sustainable Managed Portfolio Service (SMPS) team has continued to diversify its fixed income and equity fund holdings. The team has added to short dated bonds in the models at the expense of cash, and increased exposure to large cap and value whilst reducing growth and small caps within equities.
Evelyn Partners Sustainable MPS team continues diversification in latest re-balance
In its latest re-balance of portfolios, the Evelyn Partners Sustainable Managed Portfolio Service (SMPS) team has continued to diversify its fixed income and equity fund holdings. The team has added to short dated bonds in the models at the expense of cash, and increased exposure to large cap and value whilst reducing growth and small caps within equities.
Cash was reduced in all Sustainable MPS portfolios except Maximum Growth. Where the portfolios hold more than 2% cash, it is invested in a LV NAV money market fund which is able to take advantage of the best possible rates available. The Sustainable MPS team added a new holding in Aegon Global Short Dated Climate Transition fund (previously called Aegon Short Dated Investment Grade Bond). The positions were primarily funded from a combination of cash and reducing TwentyFour Sustainable Short Term Bond Income, the latter of which was previously a very large position in the lower risk portfolios. The Sustainable MPS team continue to regard the fund very highly, but believe that greater diversification within the fixed income allocation is prudent. The team also topped up exposure to the iShares 0-5Y Gilts ETF.
In the equities space, the team bought a new position in Jupiter Responsible Income, which has been managed by James Moir at Jupiter since December 2021 and was introduced to further diversify the portfolios’ UK equity allocations. It was funded via reductions in the existing UK equity holdings, but most materially from Trojan Ethical Income, given that it exhibits understandably higher correlation with Trojan Ethical owing to the consistent approach to equity selection, which is held within the Alternatives allocation. Elsewhere, the team added to Schroder Global Sustainable Value at the expense of holdings which tend to have a heavier bias to growth and away from larger companies.
Genevra Banszky von Ambroz, lead manager of the Evelyn Partners Sustainable MPS commented:
“Against what continues to be an extremely challenging macro backdrop, characterised by a very high degree of uncertainty, we have continued to focus on delivering portfolios which are truly driving towards sustainability, whilst exhibiting greater balance and diversification. The recent changes are a combination of asset allocation decisions to take advantage of current market conditions and stock selection. We are very pleased with the new fund additions, which we believe bring important benefits to the portfolios from a number of different perspectives.”
About Evelyn Partners
Evelyn Partners is the UK’s leading integrated wealth management and professional services group, created following the merger of Tilney and Smith & Williamson in 2020. With £59.1 billion of assets under management (as at 31 December 2023), 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
For further information please visit: www.evelyn.com
Disclaimer
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.
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