Quilter Investors Cirilium range adds new value and infrastructure funds

2 November 2023

The Quilter Investors Cirilium range has added two new funds across its portfolios as it seeks to boost inflation linkage for investors and further align the range with its long-term view.

The funds added were the M&G European Strategic Value fund, which was added to the Cirilium Active and Blend portfolios, and the ClearBridge Global Infrastructure Income fund which was added to Cirilium Blend.

The Cirilium Blend portfolio, managed by Ian Jensen-Humphreys, Sacha Chorley and CJ Cowan, typically holds one growth fund and one value fund for each region. Following disposal of a European value ETF in Cirilium Blend, the trio believed the M&G offering helped balance the portfolio’s existing European growth-tilted holdings.

The M&G European Strategic Value fund aims to provide investors with exposure to companies that are underappreciated, preferring to take a long-term view and wait for the turnaround in investor attention and sentiment, an approach consistent with the Cirilium portfolios. The managers favoured the fund’s simple, repeatable process, which also includes consideration of ESG criteria in its selections.

Meanwhile, the ClearBridge Global Infrastructure Income fund invests in global listed infrastructure companies with a combined focus on reliable income and capital growth. The Cirilium portfolio managers want to find investments that allow investors to grow their wealth in real terms, and Jensen-Humphreys, Chorley and Cowan felt the fund offered strong inflation linkage to support this.

These latest additions come as the trio are close to finalising the fund line up in the Cirilium Active portfolios following the thorough review of all holdings they undertook when they were brought onto the Cirilium Active range late in 2022.

Ian Jensen-Humphreys, portfolio manager of the Quilter Investors Cirilium range, says:

“The global economy has continued on a trajectory that implies a ‘soft landing’ or ‘muddle through’ environment. Growth is slowing, though not too severely, while inflation is falling – albeit much slower than most of us would like. As such, it is important that we have balance in the portfolios and don’t take any extreme calls one way or the other.

“While inflation has moderated, it still poses a challenge to many investors. That is why we particularly liked the long-term, inflation linked aspect of the ClearBridge fund for Cirilium Blend, as it aligns with the desire of our investors for real terms growth. Coupled with the long-term nature of the M&G European Strategic Value, we believe we have identified funds for our investors that will serve well not only in the current environment, but over the long-term too, allowing us to block out the noise should volatility return.

“Going forward, it will be crucial to keep an eye on earnings and what this does to valuations. Rates are beginning to bite, but the direction for revenues is still uncertain and it is too early to time what central banks will be doing in the near future. As a result, we are positioned fairly cautiously, and would prefer to bide our time until clearer opportunities arise, preferring instead more predictable outcomes from funds such as these.”

Source: Quilter