Quilter Adds Inflation-Mitigating Asset Class to Cirilium Portfolios

Quilter, a financial services company, has made significant changes to its Cirilium portfolios in response to the current geopolitical situation. The firm has introduced index-linked gilts as a dedicated asset class within these portfolios, with the Vanguard Inflation-Linked Gilt Index Fund added to the lower-risk portfolios.

The allocation to this new asset class will be approximately 5% for the Cirilium Conservative portfolios, and will scale down in line with reductions in fixed income exposure for higher-risk profiles. Quilter reviews its strategic asset allocations on a quarterly basis, making recommended changes annually.

Ian Jensen-Humphreys, portfolio manager of Quilter's Cirilium portfolios, stated that the current situation makes this addition 'very pertinent'. He noted that bonds typically perform well in times of growth shocks but lose their diversification benefits when inflation is rising. The introduction of index-linked gilts aims to mitigate these risks.

In addition to adding index-linked gilts, Quilter's Cirilium portfolios have increased exposure to Japanese equities and reduced their allocation to European equities. This move reflects the firm's ongoing efforts to optimize its asset allocations in response to changing market conditions.