Quilter WealthSelect ups fixed income and reduces equity allocations

Quilter’s WealthSelect Managed Portfolio Service (MPS) has increased its allocation to fixed income and reduced its exposure to equities in its latest quarterly rebalance.

The MPS’s portfolio managers decided to maintain a tactical underweight to equities relative to the strategic asset allocation (SAA).

The managers, Stuart Clark, Helen Bradshaw, and Bethan Dixon, noted that while equity markets had rebounded since ‘liberation day’ on 2 April, risks to growth and inflation remained elevated, particularly in light of uncertainty around tariffs.

While the WealthSelect managed portfolios had seen a ‘notable increase’ in fixed income exposure, they had an underweight position relative to their SAA as the managers preferred to keep a mix of cash, alternatives, and fixed income.

The increased fixed income allocation included the introduction of Vanguard Euro Government Bond Index Fund within the managed portfolios, which Quilter said reflected the potential for economic and monetary policy divergence between Europe and the US, alongside a weakening appetite for US government debt.

In the Responsible portfolios, this was accessed through iShares Green Bond Index, providing exposure to predominantly European sovereign and corporates issuing bonds, whereby the proceeds are utilised to achieve a positive environmental outcome.

Within the Sustainable portfolios, the allocation to Goldman Sachs Sovereign Green Bond was increased, and T.Rowe Price Global Impact Credit was added to.

European equities were reduced to lock in profits and decrease the overall allocation, and Asia equities saw a ‘small trim’, with the proceeds from these reductions being redirected to emerging markets and Japan.

The MPS managers also maintained its UK overweight position and decided to increase mid cap domestic exposure via Quilter Investors UK Equity Opportunities, citing attractive valuations and improving operational momentum.

Within the Sustainable portfolios, equity allocations were adjusted to favour managers who focus on larger companies investing across broader opportunity sets, specifically within the global multi-thematic theme with an increased position in Impax Global Social Leaders.

“While markets have rallied following Trump’s ‘liberation day’, we remain relatively cautious in our outlook,” said Quilter Investors portfolio manager, Helen Bradshaw.

“The portfolios have been rebalanced to acknowledge market momentum, but also to defend against the potential volatility stemming from the ever-changing geopolitical tensions, inflationary pressures, and uncertainty around global trade.

“With this in mind, we opted to add to fixed income via increased exposure to government bonds and global credit, though we are underweight relative to the recently adjusted SAA. We also allowed our equity allocation to reduce, maintaining the existing tactical underweight position.

“We remain committed to a long-term, disciplined investment philosophy that keeps our clients’ goals front and centre. In this environment, resilience and adaptability are key, and our portfolios are well positioned to deliver both.”



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