Evelyn Partners has rebalanced its sustainable model portfolio service (MPS) range by adding to its pool of equity funds across the six risk models.
Atlas Global Infrastructure has been added to all models, while the Alquity Future World fund replaces the Stewart Global Emerging Markets Sustainability fund in the balanced, growth, adventurous and maximum growth ranges due to its “high correlation” with holdings in the Stewart Asia Pacific Sustainability fund.
Ishares MSCI Japan SRI ETF has replaced Xtrackers MSCI ESG Japan ETF as, according to Evelyn, it is “more concentrated and offers greater diversification benefits than the product it replaces”.
Meanwhile, the wealth manager has upped the weighting to fixed income across its sustainable MPS range. Equities, alternatives and cash were reduced at the lower risk end of the range.
At the higher end, equity exposure remains untouched, with increased fixed interest weightings funded from alternatives and cash. In the sustainable maximum growth risk model, cash weighting was increased at the expense of alternatives.
Genevra Banszky von Ambroz, lead manager of the Evelyn Partners sustainable MPS, said: “The overall intention of this rebalance was to further improve diversification across the portfolios, whilst taking advantage of market opportunities where they present themselves, after what has been a punishing quarter for most asset classes.”
Evelyn sustainable MPS changes
| Model | Equity holding exited | Equity holding added | Weighting changes |
|---|---|---|---|
| Sustainable conservative | Xtrackers MSCI ESG Japan ETF | Atlas Global Infrastructure, Ishares MSCI Japan SRI ETF | Equities and cash reduced Fixed interest increased |
| Sustainable cautious | Xtrackers MSCI ESG Japan ETF, Robecosam Smart Materials Equity | Atlas Global Infrastructure, Alquity Future World, Ishares MSCI Japan SRI ETF | Alternatives, equities and cash reduced Fixed interest increased |
| Sustainable balanced | Xtrackers MSCI ESG Japan ETF, Stewart Global Emerging Markets Sustainability | Atlas Global Infrastructure, Alquity Future World, Ishares MSCI Japan SRI ETF | Alternatives, equities and cash reduced Fixed interest increased |
| Sustainable growth | Xtrackers MSCI ESG Japan ETF, Stewart Global Emerging Markets Sustainability, Federated Hermes Global Sustainable Equity | Atlas Global Infrastructure, Alquity Future World, Ishares MSCI Japan SRI ETF | Cash reduced Fixed interest increased |
| Sustainable adventurous | Xtrackers MSCI ESG Japan ETF, Stewart Global Emerging Markets Sustainability | Atlas Global Infrastructure, Alquity Future World, Ishares MSCI Japan SRI ETF | Cash reduced Fixed interest increased |
| Sustainable maximum growth | Xtrackers MSCI ESG Japan ETF, Stewart Global Emerging Markets Sustainability | Atlas Global Infrastructure, Ishares MSCI Japan SRI ETF, Alquity Future World | Cash increased Alternatives decreased |
In recent weeks, several MPS ranges have been rebalanced in favour of fixed income. Parmenion and Waverton both made the shift, citing concerns over a possible recession in the months ahead, while Quilter increased its traditional fixed income weighting due to the “challenging” economic environment in the United Kingdom.
See also: Evelyn Partners CEO lauds ‘robust’ Q3
