Investment opportunities could increase during the post election period regardless of which party wins on May 6, according to The Co-operative Asset Management.

The funds and investment service for the Co-op believes that the best investments will lie in the following three key areas, public sector outsourcing, renewable energy and healthcare.

Public sector outsourcing is expected to see a surge in investments after the election because the need to cut the nation’s debt will force a rush on support and back-office functions, providing opportunities for companies in the support services sector.

Paul Mcginnis, Head of Research at The Co-operative Asset Management said: “Outsourcers work on the basis that they will maintain, and even improve service levels, whilst delivering cost savings of up to 30 per cent – an attractive option to a government looking to cut costs.

“Those businesses with diverse business models and already strong relationships with government bodies have most to gain.  Paul Mcginnis believes Serco and Mitie already have expertise and experience in the public sector and are particularly well placed.”

 Renewable energy is expected to become profitable with future governments promising to action plans to secure the UK’s future energy supply.

Paul  Mcginnis added: “Scottish & Southern Energy (S&SE) is strongly positioned to benefit.  

“Renewables already account for over 20 per cent of its overall generation capacity and it is ideally positioned geographically – in windy areas – to help the UK meet its targets.

“Specialist engineering and infrastructure planning consultancies such as RPS should also grow.”
 
And in the healthcare sector Paul Mcginnis believes it will be important for any government to put the plans in place to ensure adequate healthcare and long-term care is in place to ensure the country can cope with its ageing population.

With 2010 seeing the first of the baby-boom generation, born from 1945 onwards, beginning to retire the UK could be faced with its own major rethink on funding for this sector.  

“Increased private sector involvement will grow the size of the market for a number of Healthcare companies including pharmaceutical and medical device suppliers.

“There will be good long-term prospects for companies like GlaxoSmithKline and Shire with good exposure to these changes in both the UK and US.”

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