1 May 2024
Quilter’s WealthSelect managed portfolio service has conducted an ad-hoc rebalance on Monday, 22 April, across its WealthSelect Managed range.
Portfolio manager Stuart Clark noted that the Active and Blend portfolios have benefited from some holdings delivering positive performance since the last rebalance, particularly the Quilter Investors Precious Metals Equity fund, sub-advised by BlackRock.
This was primarily driven by a significant increase in the price of physical gold. Concurrently, the market’s anticipation of potential rate cuts has continued to diminish.
In response to these developments, the portfolio management team has undertaken an ad-hoc rebalance, thereby locking in profits from the gold position and topping up the traditional fixed income and alternative holdings.
This move follows the latest rebalance in March, which temporarily halted additional fixed income investments due to concerns over potential inflationary pressures and the level of implied rate cuts.
Since then, consumer prices in the US have continued to escalate, indicating that the efforts to curb inflation are facing challenges. This, alongside the continued strength in employment data, has seen the market significantly adjusted the number of expected cuts for 2024 from the Federal Reserve.
The latest tactical adjustment to WealthSelect reflects the portfolios management team’s continuous commitment to capitalising on market opportunities and managing investment risks effectively.
Stuart Clark, portfolio manager at Quilter Investors, said:
“The recent outperformance of Quilter Investors Precious Metals Equity fund, primarily investing in gold-related equities such as gold mining stocks, has been particularly pleasing.
“As part of our strategy, we believe it is an opportune moment to capitalise on these gains and reinforce the assets that have been lagging. This has seen us add back to traditional fixed income and alternatives within the portfolio. We feel this year an increased willingness to be nimble in repositioning the portfolios will be important to achieving the best client outcomes.”
