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

Paloma Kubiak
Written By:
Paloma Kubiak

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).