Evelyn Partners has unveiled changes to its Sustainable Managed Portfolio Service (MPS), with the rebalance designed to position portfolios against an ‘increasingly unpredictable’ market outlook.
Genevra Banszky von Ambroz, Lead Portfolio Manager of the Evelyn Partners Sustainable MPS, said:
“Changes in this re-balance sought to position the portfolios for the coming months against a market backdrop which has become increasingly unpredictable.
“The focus continues to be on delivering diversified, balanced portfolios which express Evelyn Partners’ asset allocation strategy whilst satisfying our clients’ sustainability-related preferences. Equity was generally slightly reduced, and within it, a number of changes to positioning were made to ensure continuing alignment with the Evelyn Partners’ asset allocation strategy in light of two new additions and one disposal.
“Brown Advisory US Sustainable Value allows us to more effectively diversify the portfolios’ US-focused equity exposure, whilst supporting a relatively new, but nonetheless compelling opportunity from an asset manager which delivers a thoughtful approach to sustainable investing. Recognising that consolidating US equity-focused holdings into one manager reduces diversification in relation to the approach to sustainability, the overall allocation to US equity funds has slightly reduced in most cases, in favour of Global equity funds.
“Within Global equities, the most material change is the inclusion of Sparinvest Ethical Global Value, a strategy which we have admired for some time, and which allows us to reduce the load previously carried by Schroder Global Sustainable Value, in relation to providing broad Global Value exposure to the portfolios. The two funds take radically different approaches to investing in Global companies with a material margin of safety and we believe that the inclusion of both will be additive to the overall characteristics of the portfolios’ equity holdings.
“A number of the Infrastructure investments trusts, particularly those focused on Renewables, have seen their share prices increase meaningfully over the past few months, especially during the most recent quarter. Whilst we remain confident in the Octopus Renewables Infrastructure Trust from an operating perspective, it seems sensible to take some risk off the table in a more optimistic market sentiment phase and to recycle most of that capital into funds whose unit prices are solely driven by underlying asset performance.”
Summary:
| Two holdings were initiated: Sparinvest Ethical Global ValueBrown Advisory US Sustainable Value Two holdings were sold: FTGF Clearbridge US Equity Sustainability LeadersOctopus Renewables Infrastructure Trust |
The Evelyn Partners Sustainable MPS range offers risk-rated, diversified managed portfolios with the aim of each portfolio to achieve, over the long term, an investment return of capital growth via a multi-asset portfolio of investments, demonstrating Environmental, Social, Governance (ESG) and Sustainable characteristics. Among the outsourced investment solutions Evelyn Partners provides to UK financial advisers, Sustainable MP sits alongside the Evelyn Partners Core MPS range which invests in funds and has a fixed rebalancing schedule, an Active MPS range and a low-cost Index MPS range which invest in passive funds and ETFs.
