Hardy Managed Portfolios: Pre Tactical Asset Allocation Changes

Hardy Manged Portfolios: Pre Tactical Asset Allocation Changes Comment- February 2026

Inline with our pragmatic not dogmatic approach to implementing Tactical Asset Changes (aka rebalancing), Julian, David and the investment team at Casterbridge are in the process of implementing changes to the assets in our managed portfolios, and we wanted to give you a heads up as to why, what and when.

Why?

Although macro and corporate fundamentals remain supportive, equity valuations, particularly in the US, are elevated and trade uncertainty remains high. As a result, we are keen to maintain a neutral equity stance rather than increasing overall risk.
 
In fixed income, persistent inflation risks and large fiscal deficits continue to pressure longer-dated yields, thereby reducing the diversification benefits of holding bonds – the Big Investment Breakdown (read more about this later). These changes help achieve our objectives in our bond exposure; 1. retain an underweight position, 2, maintain a short-duration bias, and 3. remove USD currency exposure.
 
Alternatives remain attractive in the current  environment, benefiting from higher dispersion and a structurally higher cost of capital, while continuing to deliver consistent, low volatility returns with limited correlation to traditional assets – something that bonds used to do.
 
What?

• Within equities, we are reducing the UK and increasing EM, in line with our longer-term strategic plans.

• At a thematic level we are increasing our exposure to energy & basic materials sectors.

• In Fixed Income, we are removing all US$ currency risk and maintain our short duration exposure.

• In Alternatives, we are improving diversification benefits by introducing two new funds. 

• To help increase diversification we are adding gold and silver equities to Defensive & Cautious portfolios, and toping up higher risk portfolios.

When?

The planned rebalance is scheduled, dependant on market activity, to take place early next week (w/c Monday 2nd March)

After these Tactical Asset Changes have been completed we will send out a video update on the latest allocation changes that can be shared with clients along with the latest Tactical Asset Changes report which adds more detail to the rationale, fund details and asset changes.

To find out more information on the Hardy Managed Portfolios, check out Understanding our Investment DNA brochure, to learn more about our approach to investing.