Lower for longer
In a scenario in which sterling is ‘lower for longer,’ and the outlook for growth in developed markets is reduced, David Jane, manager of Miton’s multi-asset fund range, also favours emerging market equities.
After the Brexit vote, there are a number of areas whose relative merits are more apparent now than they were several years prior, Jane said.
“Emerging markets among international equities, particularly those with a low exposure to global trade, can carry on as before unaffected by Brexit or a slowdown elsewhere,” he said.
Jane sees potential in domestic companies in Latin America and Asia, in particular.
“We are concentrating on Latin America and Asia with a focus on domestic companies set to benefit from rising incomes rather than global trade and commodities in order to play this theme more directly now that the headwind had been greatly reduced with a more settled commodity outlook,” he said.
“At present we are happy with our current ‘lower for longer’ bias with a defensive mix of equities in developed markets balanced with exposure to our growth themes of emerging consumers and industrial technologies.”
