Quilter’s WealthSelect managed portfolio service (MPS) has conducted an ad hoc rebalance across its WealthSelect Managed, Responsible and Sustainable ranges in response to recent bond market performance.

Portfolio managers, Stuart Clark and Helen Bradshaw, reviewed the fixed income positioning within the portfolios following the recent performance of the government bond market.

In response the market movements, the team decided to increase the fixed income allocation at the lower risk levels within the range.

Quilter stated that while the rebalance considered bond markets broadly, the recent underperformance of gilts meant that the holding was both topped up to its previous model level as well as benefiting from the higher overall fixed income allocation.

The move was made on 13 January and comes after WealthSelect’s latest quarterly rebalance in December, when the team increased its equity allocation to the United States, particularly large cap value, following the re-election of Donald Trump.

Quilter said that the latest adjustment reflected its portfolio management team’s continued commitment to capitalising on market opportunities and managing investment risks.

Commenting on the rebalance, Quilter Investors portfolio manager, Stuart Clark, said: “As evidenced by our previous ad hoc rebalances, we are always willing to be nimble in repositioning the portfolios when we believe it will help achieve the best client outcomes.

“We have been closely monitoring bond markets since our December rebalance, and we felt it was an opportune moment to lean into this market weakness, utilise our ability to actively manage the overall position of the portfolios, and increase our fixed income allocation.”

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