Trustnet Magazine 50 April 2019 | Page 2

Issue 50 / April 2019 FE Trustnet magazine When to accept you got it wrong BREAKING THE CYCLE How fund managers learn from their mistakes FOOL’S GOLD FIRST WORLD PROBLEMS Getting a big call right – The lack of options in US, and still losing money European and Japan trusts Fund, Pension, Trust / Sector Profile / Stockpicker / What I Bought Last ISSUE 50 CREDITS FE TRUSTNET MAGAZINE (FORMERLY INVESTAZINE) IS PUBLISHED BY THE TEAM BEHIND FE TRUSTNET IN SOHO, LONDON WEBSITE: www.trustnet.com EMAIL: editorial@financialex- press.net Editor’s letter I t is never easy to admit you got something wrong – and when it comes to investing it is even more difficult. This month’s cover feature from Danielle Levy looks at the behavioural psychology that stops us from facing up to our mistakes – and how this can be even more damaging than the original error. Along the theme of mistakes, Cherry Reynard asks five professional investors for details of their biggest blunders and what they learnt from them, while I look at the phenomenon of fund managers who got a 54 Anthony Luzio Editor T: 0207 534 7652 Amanda Williams Head of FE Trustnet T: 0207 534 7650 Editorial Gary Jackson Editor (FE Trustnet) T: 0207 534 7680 Rob Langston News editor T: 0207 534 7696 Sales Richard Fletcher Head of publishing sales T: 0207 534 7662 Richard Casemore Account manager T: 0207 534 7669 Constance Candler Account manager T: 0207 534 7668 Photos supplied by iStock Cover illustration: Javier Otero Younes reveals which strategic bond fund he believes is investors’ best bet for diversifying their equity exposure and LF Gresham House’s Ken Wotton names three promising stocks whose small size has led to them being overlooked by the majority of investors. Finally, John Blowers weighs up the impact funds focused on either the US, Europe or Japan is limited to just 20 names – but this hasn’t held back returns, writes Adam Lewis What I bought last of the FCA’s proposal to ban or limit exit fees on platforms – making it easier to rectify the mistake of choosing an expensive provider. Enjoy reading, Anthony Luzio Editor Contents CONTACTS: Javier Otero Art direction & design W: www.feedingcrows.co.uk major call right, but still went on to lose money. This month’s sector profile is on IT North America, Europe and Japan, with Adam Lewis finding out the limited number of trusts focused on these areas has been no barrier to long-term returns. In our regular columns, FE Invest’s Charles P. 36-41 Admitting defeat Danielle Levy finds out when it is time to accept you got it wrong and sell out of an investment P. 4-13 The resilient ones SAINTS’ joint manager Toby Ross tells Colin Donald about the search for companies built for bad times as well as good P. 14-17 Breaking the cycle Fool’s gold Correctly calling the outcome of a binary event is difficult enough, but Anthony Luzio says even getting it right is no guarantee you won’t lose money P. 22-29 Fund, pension, trust JOHCM UK Opportunities, VinaCapital Vietnam Opportunity and Premier Global Infrastructure Income find themselves under the spotlight this month Five fund managers tell Cherry Reynard about their biggest P. 30-35 mistakes – and how they learnt not to repeat them First world problems P. 18-23 The choice of closed-ended FE Trustnet Magazine is 50! FE Invest’s Charles Younes says Allianz Strategic Bond is one of the few funds in its sector to offer investors true diversification P. 54-55 We celebrate our 50th edition by looking back at some of our favourite issues P. 42-43 Opening the door The FCA plans to ban or limit exit fees on platforms, but John Blowers says the biggest savings for investors will come from other areas 46 P. 44-51 Under the radar LF Gresham House UK Micro Cap’s Ken Wotton names three promising stocks whose small size has led to them being overlooked P. 52-53 38