Managers cautious with fund range

Managers cautious with fund range

Deteriorating markets and negative narratives have led to little market opportunities for people to invest, a fund manager has claimed.

David Jane, co-manager of Miton’s multi-asset fund range, is urging caution, given the deteriorating market narrative brought on by China trade data and a return to deflation in the UK.

Mr Jane said heightened market volatility means he does not see an “obvious buying opportunity”, adding: “Markets are in a difficult place, the data is deteriorating consistently and the narrative has become quite negative.

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“Therefore, we remain defensive, particularly avoiding those areas exposed to the parts of the economy that are clearly deteriorating.”

He warned that although everything could change with new information, particularly in the form of central bank policy, but in the meantime he said: “We can see no reason to get overcommitted”.

Adviser view

Kusal Ariyawansa, chartered financial planner at Appleton Gerrard Private Wealth Management, said: “I can agree with most of what Mr Jane says. Our clients have portfolios split into short (income-satisfying), medium and long-term models.

“I would not stimulate a move to caution as part of their portfolios cater for this need. It is good to see other actively-managed funds considering the macroeconomics, but at the end of the day they will be judged on their annualised returns.”