Quilter Incorporates Index-Linked Gilts into Cirilium Portfolios

Quilter, a financial services company, has made changes to its Cirilium portfolios by adding index-linked gilts as a dedicated asset class. This move aims to improve diversification against UK inflation and provide lower-risk investors with protection against rising prices.

The exposure comes through the Vanguard UK Inflation-Linked Gilt Index fund, which was added to the lower-risk portfolios at an allocation of about 5%. The percentage scales down as fixed income exposure falls in higher-risk profiles. This change is part of an optimization of the Cirilium portfolios' strategic asset allocation (SAA).

Ian Jensen-Humphreys, portfolio manager of the Cirilium portfolios, stated that adding index-linked gilts to the portfolios feels like a pertinent time, especially given the recent geopolitical situation. He emphasized the importance of having both types of gilts within a portfolio to mitigate the risks associated with inflation and growth.

Quilter reviews each range's allocation every quarter and typically makes recommended changes once a year. The same update also raised exposure to Japanese equities and reduced exposure to European equities.