Evelyn Partners’ sustainable managed portfolio service (MPS) team has added three new funds to its portfolios.

The Vanguard UK Government Bond, iShares up to 10 Years Gilts Index, and M&G Global Sustain Paris Aligned have all been added in the latest rebalance.

Evelyn Partners said the latest additions saw trades across all asset classes as the team repositioned the six portfolios for the year ahead.

Four holdings were sold, which were Vanguard US Government Bond Index (hedged), Brown Advisory Sustainable Total Return Bond, Trojan Ethical Income, and SDCL Energy Efficiency Income Trust.

Lead manager of the Evelyn Partners sustainable MPS, Genevra Banszky von Ambroz, said that in the group’s fixed income offering, its exposure to sovereign bonds was adjusted to reflect its “preference for having nominal exposure in the UK”, where a growth shock is more likely, and “inflation-protected exposure in the US”.

“iShares Up To 10 Years Gilts Index and Vanguard UK Government Bond Index funds were introduced to reflect this,” Banszky von Ambroz said.

“Within our corporate bonds allocation, holdings in the TwentyFour Sustainable Total Return Bond Income and Aegon Global Short Dated Climate Transition Bond funds were increased.

“Mindful that the UK equity market continues to trade at a substantial discount to the US market – albeit with a distinct lack of a clear catalyst for this to reverse – but also recognising that exposure within the models is relatively high when compared with Evelyn Partners’ tactical asset allocation view, holdings in Liontrust UK Ethical, Jupiter Responsible Income and Royal London Sustainable Leaders were reduced.”

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