Evelyn Partners MPS confirms holding changes
It continued to add to hedged nominal US sovereign bonds (and hedged inflation-linked US sovereign bonds in lower risk portfolios) by reducing exposure to corporate credit
Evelyn Partners Sustainable Managed Portfolio Service (MPS) team has sold out of its holding in Impax Environmental Markets Investment Trust.
Instead of investing in Impax Investment Trust, the company has invested in its open-ended sister strategy, Impax Environmental Markets.
The MPS team has also added to its positions in Baillie Gifford Responsible Global Equity Income and Federated Hermes Sustainable Global Equity.
In keeping with Evelyn Partners’ asset allocation position, the Sustainable MPS team slightly increased its overall fixed income exposure across the board as it sought to combine instruments to achieve their desired duration exposure.
It continued to add to hedged nominal US sovereign bonds (and hedged inflation-linked US sovereign bonds in lower risk portfolios) by reducing exposure to corporate credit.
Liontrust SF Monthly Income Bond was sold in its entirety in order to reduce overall duration within the portfolios’ credit exposure, and to fund additions to sovereign bonds and cash.
Genevra Banszky von Ambroz, lead manager of the MPS, said: “Impax Environmental Markets Investment Trust was sold in favour of slightly smaller positions in its open-ended sister strategy which offers broadly similar underlying exposure without the discount to NAV volatility associated with owning a listed vehicle.
“The resulting balances were used to add to our holdings in Baillie Gifford Responsible Global Equity Income and Federated Hermes Sustainable Global Equity which offer more diversified, core global equity exposure.”
She added: “Sovereign bonds are offering attractive yields and should provide downside protection in these more challenging market conditions. Within the alternatives exposure, the share prices of the real assets holdings have continued to struggle in the face of rising interest rates and the relative attractiveness of fixed income, despite generally robust operating performance.
“We continue to have conviction in the diversifying characteristics, sustainability credentials and exposure to inflation-linked revenue streams that our real assets allocation offers.”
