Government bonds in vogue as Evelyn boosts allocation for MPS

Move towards more government bonds at the expense of corporate bonds

Hope William-Smith
clock • 1 min read

The Evelyn Partners core managed portfolio services (MPS) team is increasing its exposure to government bonds as expectations around the imminent peak in the interest rate cycle continue to mount.

The wealth manager today (16 October) said government bonds were a "compelling" choice but that the increased allocation meant it would trim back on corporate bonds. "Credit spreads have continued to tighten to levels that their protection characteristics have become less obvious," explained lead manager James Burns. "Where we retain exposure, it is significantly skewed to short-dated bonds that should fare relatively well in the event of any downturn." Burns added that alternative assets, notably absolute return funds and real assets, were also less attractive at the moment than gove...

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