Can small investors really hope to make much money out of windfarms?
All the talk of radical new policies needed to beat climate change from energy and climate change secretary Ed Miliband, has convinced Emma Howard Boyd of fund manager Jupiter Asset Management that there will be a wide impact of these policies which extends far beyond companies already regarded as “green”.
Jupiter launched its Ecology Fund over 21 years ago, in 1988, and claims a return of 320 per cent since then. However, stock tipster Richard Hunter at Hargreaves Lansdown feels the impoverished state of the public finances is a more pressing worry for investors.
In his July “Stockhunter” note to HL customers, he says share prices could be significantly affected when the Government eventually decides to raise taxes. He thinks utility companies like United Utilities and Severn Trent might face higher tax bills, along with perennial targets of alcohol (Punch Taverns, Mitchells and Butler) and tobacco (BAT, Imperial).
Meanwhile, continued Government spending could boost firms in the health sector (GlaxoSmithKline, AstraZeneca), education (Pearson, RM Group) and infrastructure (Balfour Beatty, Carillion).