Evelyn Partners MPS team increases fixed income allocation

Evelyn Partners Active Managed Portfolio Service (MPS) team has announced that it has increased its allocation to fixed income.

This move comes as a result of yields available on both government and corporate bonds continuing to look attractive.

Due to these yields the team has added to its existing positions within fixed income.

The positions include Vanguard US Government Bond Index (H), Artemis Corporate Bond, Sequoia Economic Infrastructure Income and M&G Emerging Markets Bond.

It has also added three holdings to its range; GQG US Equity, INPP and Federated Hermes Asia Pacific ex-Japan.

James Burns, lead manager of the Evelyn Partners Active MPS, said: “This rebalance saw us increase our allocation to fixed income as the yields available on both government and corporate bonds continue to look attractive.

“Most significantly, the exposure to US government bonds hedged back to sterling was generally increased across the range as we believe that the US is close to a peak in its interest rate cycle. We would expect these bonds to provide good risk-off protection for the portfolios should the macro-economic picture deteriorate.”

He added: “The reduction in equities does not reflect a particularly negative outlook, rather an acknowledgement that there is more uncertainty for risk assets and that it was prudent to trim our long-held overweight position. Changes were varied across the range with the only consistent theme being a reduction in the UK exposure.”