Jane (pictured), head of multi-asset and manager of the Miton Cautious Multi-Asset, Defensive Multi-Asset and Cautious Monthly Income funds, said he is holding stocks related to cyber security as he is concerned about political instability and changing international relations, which has created a greater demand for products related to security and defence.
“Cyber security has been a particular recent addition as defence spending has shifted from traditional armaments towards defending against cyber-attack.
“Additionally, this theme can benefit from the Trump administration’s increased focus on military spending and the desire for other members of the democratic world to carry a more equal share of the costs.”
David Jane’s 2017 outlook: Equity valuations not especially overstretched
Other themes currently being played out in portfolios include healthcare, robotics and consumer technology.
He is also looking to the US for his play on industrial technology and robotics which he hopes will perform better than it has previously due to increased economic demand.
The manager said: “This area has not been as strong as it might have been as capital investment has lagged, but the twin drivers of increased economic demand and reshoring may now drive greater growth in this area.
“US companies, under pressure from the new administration to stop moving jobs offshore, will likely substitute cheap, foreign labour with more expensive US labour and high levels of automation.
Meet the Investment Influencers: David Jane of Miton
“This trend of substituting technology for labour, which is already entrenched in Asia, is likely to hold also in Europe and the US, in an accelerating growth environment.”
The £381m Miton Cautious Multi-Asset fund has returned 12.4% over one year to 2 February, according to FE, in line with the IA Mixed Investment 20%-60% Shares sector.
