London & Capital has rebalanced its Managed Portfolios so that emerging market equity exposure has been reduced and reallocated to UK and European equities.
Manager diversification has been increased within the UK equity allocation by adding the Rathbone Income fund.
Within fixed income, the Schroder Absolute Return Fund has been dropped and replaced with the Henderson Preference & Bond Fund. The existing allocation to the Invesco Perpetual Global Bond Fund has been switched into the Legal & General Dynamic Bond Trust.
Richard Leigh, founding partner and head of adviser solutions, says: “Emerging markets continue to face headwinds from capital outflows and tightening monetary policy, while recovery in Europe and the UK has gained traction. With this in mind we have increased our preference for developed market equities and specifically the UK.”
The firm has also decided to soft close Managed Portfolios 1-3.
“Without the ability to hedge interest rate risks in the Managed Portfolios, low risk portfolios will be vulnerable as interest rates normalise and will struggle to deliver return objectives,” says Leigh.
