Franklin Templeton's Grant Bowers, manager of the £100m US Opportunities fund, has said people will be surprised how much US President Trump can achieve in his tenure, with financials in particular set to benefit from his policies.
California-based Bowers said he expects Trump will be able to pass his reforms, albeit in an amended form to his current proposals.
He particularly highlighted planned healthcare and tax changes as being of interest for US fund managers.
Trump's 'once-in-a-generation' tax reform plans would cut the US individual tax brackets from seven to three and slash corporation tax from 35% to 15%.
It would also eliminate almost all tax deductions, including those for state and local taxes, meaning potential high increases for those in high-tax states, such as New York.
"Trump will surprise people with how much he is able to get through," Bowers said.
"His policies are pro-business, such as tax changes and repatriation of offshore cash. Having less regulation and lower taxes is a net positive for businesses.
"There is £1bn in offshore cash and I expect repatriation of that money back to the US. This will result in stock buybacks, increased capital expenditure, dividends, and M&A, which has been consistently strong."
According to data from Mergermarket, US M&A activity in 2016 reached the second-highest level since 2001, with nearly 5,000 deals worth a total of $1.5trn.
Already this year, there has been a bid by US firm Kraft Heinz for UK consumer staples giant Unilever for £115bn, although this was later rejected.
"This is an attractive backdrop for M&A right now for companies who want to expand, consolidate or reach new markets. You will see bigger and bigger deals going forward," Bowers said.
Financials are also likely to be a beneficiary of the healthcare changes as well as the tax changes, according to the manager.
Trump has succeeded in the first stage of his long-term strategy to repeal Obamacare, after narrowly passing his American Health Care Act in the lower chamber of Congress by 217 to 213 votes.
Bowers has 15% in healthcare, in line with the index, and 7% in financials.
"The healthcare plans are benign for pharmaceutical and biotech stocks and will be positive for insurance companies. There is still a way to go and there will likely end up being a big difference between what is proposed and what gets approved," he said.
"We like healthcare and think there is increased demand for better treatment worldwide."
The Franklin US Opportunities fund has returned 33.9% over one year to 18 May, according to FE, versus an IA North America sector average of 32.6%.
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