UK fund managers pick out some of the potential beneficiaries of the Chancellor’s November Budget.
Abi Oladimeji, Chief Investment Officer at Thomas Miller Investment, says: “Yesterday’s budget was a mixed bag and overall market impact should be muted. There will, however, be some notable winners from an equity sector perspective.
“For instance, the changes to stamp duty rules for first-time buyers may boost property transactions, benefiting firms such as Foxtons and the broader UK property sector.”
However, the housing theme doesn’t just stop there – while the Budget and its proposed clampdown on land banks may have been bad news for major housebuilders, the commitment to new housing projects should bode well for building material suppliers.
“The commitment to greater volumes is an important positive for the materials suppliers,” Anthony Lynch, manager of the JPM UK Equity Core fund, told Morningstar.
He namechecks brick makers Forterra and Ibstock and underfloor heating manufacturer Polypipe as three beneficiaries.
Paul Spencer, manager of the Franklin UK Mid Cap fund, also likes Ibstock, which is the biggest brick maker in the country. He says the firm “might be in a very strong position” should we get anywhere near the Government’s 300,000 target for new homes. “It looks a very sensible place to be invested,” he argues.
While the Chancellor gave driverless vehicles a passing mention, the focus for the time being is on electric vehicles. Hammond confirmed £500m in funding for both sectors, with four-fifths of that to be spent on improving the electric charging infrastructure.
With this in mind, Neil Brown co-manager of the Liontrust Sustainable Investment team, likes German firm Infineon Technologies and French company Valeo.
Colin Morton, manager of the Franklin UK Equity Income fund, thinks tech start-ups will be boosted by improved funding. And while there will be a crackdown on so-called ‘white ciders’, smaller pub and restaurant firms will see positives from a freeze on duties associated with other ciders, beers, wines and spirits.