Evelyn Partners has expanded its exposure to "compelling" government bonds, in its latest re-balance of portfolios.
The firm's core managed portfolio system (MPS) will reduce its corporate bonds through the move.
Alternative assets, namely absolute return funds and real assets were also reduced.
It has added to their holdings in Vanguard US Government Bond Index (hedged share class) and the CG Dollar Fund, which invests in US Government index-linked bonds.
James Burns, lead manager of the Evelyn Partners Core MPS said: “We continued our theme of recent rebalances of adding to government bonds as expectations have risen that we are at or close to the peak in the interest rate cycle in developed markets.
"Government bonds remain compelling for as well as offering attractive real yields they should also provide a level of portfolio insurance were a growth shock to occur. Inflation-linked bonds also look interesting as we believe markets may be under-estimating medium-term inflation."
He added: “Although at the index level US equities have been strong this year, this masks the fact that this has been driven by a handful of tech names which have benefitted from hype around Artificial Intelligence."
The team has also made changes to the balance within the equity element of the portfolios, scaling back their UK exposure in favour of the US and have adding a new holding in GQG US Equity, a large-cap focused US best ideas fund managed by QGG Partners.
In July, Evelyn Partners increased its fixed income allocation by adding three new holdings to its range.
tara.o'connor@ft.com
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