You are here: Home - Investing - Experienced Investor - News -

How investors can benefit from the government’s home and hospitality plans

Written by:
The chancellor’s ‘plan for jobs’ as part of the Summer Statement included giveaways to shore up the coronavirus-ravaged housing and hospitality sectors. Here are six funds which could benefit.

Rishi Sunak announced a number of schemes to encourage Brits to spend after the economy virtually ground to a halt from March.

Speaking in the Commons yesterday as part of the Summer Statement, the chancellor announced measures to support and create jobs, plans for a green recovery, discounts to dine out and a stamp duty cut.

Darius McDermott, managing director of FundCalibre, said there are three main areas where investors may be able to benefit from the announcements, and lists six funds to start with:

A green recovery

With historic infrastructure spend, newly created green jobs and a green homes grant, funds investing in renewable energy and the energy efficiency supply chain are all set to benefit:

Ninety One Global Environment is only six months old but is genuinely unique, investing only in companies that are contributing to the decarbonisation of the world economy.

VT Gravis UK Infrastructure Income invests in all kinds of infrastructure, with many underlying projects backed by the government. A third of the fund is currently in solar wind and energy storage solutions.

A housing market boost

With thousands of pounds to be saved in stamp duty over the next six months, the hope is that more people will buy houses and spend money on improvements.

Threadneedle UK Extended Alpha is well-positioned for more house purchases with holdings in Ferguson Plc (plumbing & heating products), Grainger (UK’s largest residential landlord), Berkeley Group, Persimmon Homes and Crest Nicholson (all housebuilders), Howden Joinery and Breedon Group (building materials).

MI Chelverton UK Equity Growth with its small and mid-cap bias, is more set for home improvements with holdings in Travis Perkins, DFS, Topps Tiles, Tyman (windows and doors) and Inland Homes (a brownfield developer).

For hospitality and tourism

With Brits encouraged to enjoy summer safely with staycations and to ‘eat out to help out’ in pubs, restaurants and cafes, a temporary VAT reduction on accommodation, food and attractions, as well as discounts off mid-week meals were announced.

Baillie Gifford Strategic Bond holds the bonds of Merlin Entertainments (the owner of Alton Towers and Chessington World of Adventures), Whitbread (Premier Inn owner) and Greene King, the pub and restaurant operator.

Marlborough Multi Cap Income owns the shares of Cineworld, Secure Income REIT (which itself owns a few hotels including Travelodge) and PPHE Hotels (Park Plaza Hotels).

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
BLOG: Market volatility is one reason not to discount an annuity

Since the introduction of pension freedoms, far more savers have chosen to keep their pension invested, drawing an income from...