Is Japan the investment play of 2023?
This article first appeared on moneymarketing.co.uk on 17th January 2023 History has taught me to be...
The Romans were the first to travel for pleasure. But it wasn’t for another 1,800 years – and the industrial revolution – that holidays in the UK become something to be enjoyed by more than just royals and the rich.
The steam train in 1814, followed by the introduction of the bank holiday in 1871, made it possible for the common Victorian to travel and the ‘short-break’ was born. Seaside towns were filled, as donkey rides, sandcastles, ice creams and fish and chips were all enjoyed.
It wasn’t until the 20th century that holidays truly came into their own. The first commercial flight was made in 1914, and guaranteed holiday time for workers can into effect in 1938. Low-cost airlines in 1985 then really made flying abroad truly affordable for all.
As we head towards the start of the school summer holidays, we decided to have a look at some Elite Rated funds investing in some of our favourite holiday destinations:
For those who prefer a ‘staycation’, TIME:Commercial Long Income invests commercial freehold ground rents and property – including supermarkets to car showrooms, student accommodation and hotels. Among its top ten currently* are Holiday Inn, Southend and Premier Inn Great Yarmouth: two popular seaside destinations.
Europe is the destination of choice for many Brits, as its our closest neighbour. Whether its a gîte in France or a villa with a pool in Spain, the weather is generally warmer, drier and more predictable than at home. Waverton European Capital Growth has holdings* in both countries, as well as Switzerland, Sweden, Denmark and Germany for those preferring the north of the Continent.
Longer-haul travellers may favour the US or Canada. Mark Sherlock, manager of Hermes US SMID Equity, is lucky enough to get to travel to places such as California and Hawaii on his research trips – as well as the less glamorous destination of North Dakota. He explained all in his recent podcast.
More adventurous holiday-makers may prefer all that Asia has to offer. Thailand and Bali in Indonesia have been popular destination for years, while places like, China, Vietnam and India are grabbing the attention of intrepid travellers. This fund’s largest country weighting is China (36.6%**)
Japan has two very good reasons it will attracting more tourists over the next 12 months: the Rugby world cup this September and the Olympic Games in 2020. Sports fans from all over the world will be congregating in the country. This fund invests in around 60-100 Japanese companies of all sizes, although with a notable overweight to smaller firms.
And, as we celebrate the 50th anniversary of man walking on the moon, it’s worth sparing a thought to future destinations.
While holidays to the moon were once limited to science fiction, several companies – including SpaceX and Virgin Galactic – are trying to make it a reality. Horizn Studios has even invented a suitcase for space travel!
Now if only there was an Elite Rated fund to link that to…