In its latest re-balance of portfolios, the Evelyn Partners Sustainable Managed Portfolio Service (MPS) team has increased its exposure to Global, UK, Asia and Emerging Market equity funds at the expense of those focused on Japan and Europe.
The re-balance saw the team add to its holdings in UK equity funds Jupiter Responsible Income, Trojan Ethical Income and Royal London Sustainable Leaders. Meanwhile, in the Asia Pacific Ex Japan space, it added to its holding in Stewart Investors Asia Pacific Sustainability.
In addition, the team added to its positions in sovereign bonds through Vanguard US Government Bond Index (hedged) fund.
Genevra Banszky von Ambroz, lead manager of the Evelyn Partners Sustainable MPS commented: “In general, we continued to add to our positions in Fixed Income through nominal sovereign bonds which we believe offer reasonable yields alongside attractive risk-mitigation characteristics. We are more positive on regions outside of the US, primarily on relative valuation grounds, so increased our exposure to Global, UK, Asia and Emerging Market equity funds in this re-balance, moving the look-through exposure into closer alignment with the house view.
“Alternatives, primarily Absolute Return, were used as a source of funds for the additions to Fixed Income; the Real Assets investment companies have had a tougher time of late, but we are comfortable with the positioning given that we believe they provide exposure to assets and strategies which have the potential to deliver attractive risk-adjusted returns alongside strong sustainable characteristics, and in a number of cases, real impact.”
The team added a new holding to its portfolios: CG Dollar Fund, an active, benchmark-agnostic, long-only fund which invests in US government index-linked bonds, and is managed by an experienced team at CG Asset Management.
In addition, three holdings were sold:
- Liontrust SF European Growth – Genevra commented: “We admire Liontrust’s approach to managing the Sustainable Future portfolios, however the fund’s bias towards higher growth mid and small caps is at odds with our preference for more balanced exposure to Europe given the current market backdrop.”
- iShares MSCI Japan SRI ETF – Japan exposure has been slightly reduced to fund allocations elsewhere; the portfolios benefit from Japanese company exposure via their Global and Asia Pacific ex Japan equity holdings.
- Lyxor US TIPS (H) ETF – replaced with CG Dollar Fund.
