The Evelyn Partners Sustainable Managed Portfolio Service (MPS) team has added three new funds to its portfolio in its latest rebalance.
The funds are Vanguard UK Government Bond; iShares Up To 10 Years Gilts Index; and M&G Global Sustain Paris Aligned.
The rebalance involved trades across all asset classes as the team repositioned the six portfolios for the year ahead. As part of this change, four holdings were sold: Vanguard US Government Bond Index (hedged); Brown Advisory Sustainable Total Return Bond; Trojan Ethical Income; and SDCL Energy Efficiency Income Trust.
Genevra Banszky von Ambroz, lead manager of the Evelyn Partners Sustainable MPS, said: “In Fixed Income, exposure to sovereign bonds was adjusted to reflect our preference for having nominal exposure in the UK, where a growth shock is more likely, and inflation-protected exposure in the US. iShares Up To 10 Years Gilts Index and Vanguard UK Government Bond Index funds were introduced to reflect this.
“Within our corporate bonds allocation, holdings in the TwentyFour Sustainable Total Return Bond Income and Aegon Global Short Dated Climate Transition Bond funds were increased.”
In addition, the team also reduced holdings in Liontrust UK Ethical; Jupiter Responsible Income and Royal London Sustainable Leaders to reflect the UK equity market continuing to trade at a substantial discount to the US market as well as acknowledging that exposure within the models was relatively high when compared with Evelyn Partners’ Tactical Asset Allocation view.
On the decision to sell Trojan Ethical Income in its entirety and take profits from CT Responsible Global Equity and Brown Advisory US Sustainable Growth, the team decided to recycle the proceeds into Core Global, Core US and Thematic strategies.
“Included within these changes were the introduction of the M&G Global Sustain Paris Aligned fund and an increase to Regnan Sustainable Water and Waste. Absolute Return and Gold positions were increased in our Alternatives allocation. SDCL Energy Efficiency Income Trust was sold in our Growth and Adventurous portfolios, with the proceeds used to buy Cordiant Digital Infrastructure, an existing holding in the lower risk models,” Banszky von Ambroz added.
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