Register to get free articles
Want unlimited access? View Plans
Already have an account? Sign in
The Evelyn Partners Active Managed Portfolio Service (MPS) team has carried out fund switches in its US and Emerging Markets equity allocations as part of its latest re-balance.
The Active MPS team exited the JPMorgan US Equity Income fund and reinvested into the BNY Mellon US Equity Income fund primarily based on a preference for the process of the team at BNY Mellon.
However, the managers were also able to benefit from access to an attractively priced share class that led to an overall OCF saving.
The Hermes Global Emerging Markets fund was also exited from all Active MPS portfolios bar Dynamic Growth, where it was reduced significantly, and reinvested into the Baillie Gifford Emerging Markets Leading Companies fund.
In addition, within the three lower risk portfolios, the Active MPS team have sought to take advantage of persistently wide discounts in property, infrastructure and hedge fund investment companies.
In this space, the managers added to their positions in BH Macro, Empiric Student Property and International Public Partnerships.
James Burns, lead manager of Evelyn Partners Active MPS, said: “We have made the fund switch in our Active MPS emerging market equity allocations because we have more conviction in the process and team at Baillie Gifford which is unashamedly growth focused.
“We believe that the Baillie Gifford Emerging Markets Leading Companies fund, which is managed by Will Sutcliffe, Roderick Snell and Sophie Earnshaw, will benefit significantly from any improved outlook and sentiment towards these markets.”
He added: “Separately, we believe the discounts that have persisted in our property, infrastructure and hedge fund investment company for the past year and a half are unsustainable.
“Any change in sentiment, either because of the outlook for interest rates or because of a change to the penal cost disclosure regime that these companies are currently subject to, could see a significant narrowing of discounts and the possibility of very attractive returns.”
