Wealth manager Evelyn Partners has targeted investors unnerved by global uncertainty with a new bespoke portfolio service that invests in cash and bonds and aims to beat the returns available on cash accounts.

The cash and cautious bond strategy has been launched into the adviser market today with an ongoing fee of 0.15% pa covering both portfolio management and custody.

The service invests in a bespoke selection of liquid, high-quality and low-risk cash-adjacent securities and shorter-dated bonds.

The portfolios were first made available to Evelyn Partners’ direct clients two years ago.

The company said the portfolios can be tailored to individual clients’ timescales and drawdown needs, while also offering potential for tax-efficient returns.

Evelyn said the strategy offers greater diversification than many existing near-cash strategies and gilt ladder services on the market, as it incorporates cash deposits, money market instruments and gilts, as well as bonds issued by selected global organisations with strong credit ratings. 

Matthew Spencer, head of intermediaries at Evelyn Partners, said: “Our cash and cautious bond strategy has been a widely welcomed solution over the last couple of years for direct clients looking for a home for substantial cash balances.

“Current global economic uncertainty and volatile equity markets mean many clients are also looking for somewhere to earn an enhanced return compared to cash, while they wait until the macroeconomic outlook becomes clearer before putting money to work in riskier assets.”

He said savings accounts are already seeing reduced returns, and with central banks expected to continue to cut benchmark rates, “as we saw last week with the latest reduction by the Bank of England,” this is set to continue. 

Mr Spencer said: “There’s a window of opportunity for financial advisers to lock in elevated short-term bond yields for their clients as part of a diversified and low-risk strategy.”