Quilter’s WealthSelect managed portfolio service (MPS) has initiated an ad hoc rebalance to reduce its precious metals holdings.

The firm said it undertook the unscheduled rebalance to take advantage of the recent rise in precious metal prices.

In its Managed range, this rebalance saw the holdings in the Quilter Investors Precious Metals Equity Fund, managed by BlackRock, and the Quilter Investors Natural Resources Equity Fund, managed by Janus Henderson brought back to model weight.

The move aimed to lock in profits while reallocating to other areas of the market that have lagged in recent months.

Meanwhile, in its Responsible range, profits were primarily taken from Janus Henderson Horizon Responsible Resources Fund.

The WealthSelect managed portfolios have had a long-standing allocation to precious metals companies, with the team previously taking profit from its precious metals holdings in October.

Quilter said the decision to reduce precious metals holdings in the unscheduled rebalance was primarily driven by the strong performance of gold and natural resources, resulting in portfolio allocations moving materially away from their target weights.

The firm noted that while exposures had been reduced, the Managed and Responsible range of portfolios continued to retain exposure to commodities.

The portfolios will be going back to model, taking profits from recent outperformers and reallocating into areas that have lagged, including topping up exposures such as Quilter US Equity Growth Fund, managed by JP Morgan, iShares North American Index Fund, and iShares US Equity ESG Screened and Optimised Index.

“Given the magnitude of recent gains, we felt it was prudent at this juncture to lock in some profits,” commented WealthSelect portfolio manager, Stuart Clark.

“Gold, silver and copper especially have been on a remarkable run, and while we still see positive long-term prospects for the precious metals, there is likely to be some volatility as prices adjust, and the news flow continues to fluctuate.

“The extreme price moves that we saw on 30th January, after the portfolios had been repositioned, are not an indicator of a healthy investment market.

“While short term we are pleased to have reduced exposure for our clients, prior to this sell off this level of volatility may harm investor confidence. It is in this environment that the combination of financial advice and active management can add significant value to clients.

“We entered the year saying that we would need to remain flexible in thought process and portfolio positioning and, so far, 2026 is living up to this expectation.”

---