Evelyn Partners has unveiled changes to its core managed portfolio service (MPS) to reduce exposure to the UK.
The rebalance has seen the firm reduce its exposure to UK equities with the proceeds being reinvested into European equities.
No changes were made to the bonds or alternatives allocations.
James Burns, head of MPS and lead portfolio manager on Evelyn Partners Core MPS, said: “Within our regional equity allocation, we have for some time held a large overweight to the UK and a more modest underweight to Europe versus our long-term asset allocation framework.
“While UK market performance has been strong year-to-date, we struggle to find sufficient conviction to justify maintaining such a large exposure. Both regions look cheap compared to the US, but relative earnings and margin signals suggest that Europe ex-UK is more appealing than the UK.”
Burns said only one new fund was introduced, with M&G Asian being added to the two highest risk portfolios to add some diversification to the firm’s list of holdings.
“The manager, David Perrett, takes a benchmark aware approach with no large deviations in either sector or geographic allocation. Instead, he has developed a strong track record of generating outperformance through stock selection,” Burns added.
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