Jane replaced Martin Gray as manager of Miton’s multi-asset range, which includes CF Miton Special Situations Portfolio, CF Miton Strategic Portfolio, CF Miton Total Return fund and Miton Global Diversified Income fund.
Among these funds there are some large cash positions which Jane has begun putting to work to increase diversification.
Changes underway include a bulking up of UK large cap equities with strong yields, an increase in Eurozone large cap equities, and cut backs in Japanese equities and Asia excluding Japan equities.
On the fixed income side Jane has been upping total exposure to bonds through buying long dated UK and US government bonds and adding Australian government bonds to the portfolios.
Property is another asset class having its weighting raised through adding some small positions in UK REITs, with the aim of benefitting from ‘attractive yield’ as well as the effect.
Jane has trimmed out copper and industrial metals holdings and also converted all cash deposits in sterling from various other currencies that has been held due to the sterling liabilities reflected in the Miton investor base.
“We are sympathetic to concerns towards extended equity valuations, even if valuations rarely give insight into timing,” Jane said. “As a result we are buying equities that are underpinned by more attractive yields in the UK, Europe and the US, most of which are large caps with diversified earnings streams,” he added.
“Data remains king and investors will be looking for top-line growth, rather than earnings growth through cost-cutting,” Jane continued. “They will also be hoping for encouraging economic growth without inflationary pressures, however stronger growth and the promise of short rates remaining low cannot continue indefinitely, and diversification is essential,” he noted.
