Evelyn Partners' Active Managed Portfolio Service team has rebalanced its portfolios to increase fixed income allocation on the back of yields available on government and corporate bonds.
The rebalancing exercise meant the team reduced its overweight to equities.
Within fixed income, the Active MPS team added to its existing positions in the Vanguard US Government Bond index, the Artemis Corporate Bond, the Sequoia Economic Infrastructure Income and the M&G Emerging markets Bond funds.
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They also added three new holdings to their portfolio including, the GQG US Equity fund, INPP and the Federated Hermes Asia Pacific ex-Japan strategy.
James Burns, lead manager of the Evelyn Partners Active MPS, said: "This rebalance saw us increase our allocation to fixed income as the yields available on both government and corporate bonds continue to look attractive."
Burns said one of the most significant changes was increasing the exposure to US government bonds hedged back to sterling "as we believe that the US is close to a peak in its interest rate cycle".
"We would expect these bonds to provide good risk-off protection for the portfolios should the macro-economic picture deteriorate," Burns said.
He said: "The reduction in equities does not reflect a particularly negative outlook, rather an acknowledgement that there is more uncertainty for risk assets and that it was prudent to trim our long-held overweight position. Changes were varied across the range with the only consistent theme being a reduction in the UK exposure."
