Trustnet Magazine 53 July 2019 | Page 2

FE Trustnet Issue 53 / July 2019 MULTI-MILLIONAIRES Do multi-manager funds offer value? STRANGER THINGS The trusts investing in obscure assets (DON’T) DO IT YOURSELF Is DIY investing too risky? Fund, Pension, Trust / Sector Profile / Stockpicker / What I Bought Last ISSUE 53 CREDITS FE TRUSTNET MAGAZINE IS PUBLISHED BY THE TEAM BEHIND FE TRUSTNET IN SOHO, LONDON WEBSITE: www.trustnet.com EMAIL: editorial@financialex- press.net Editor’s letter A s the fallout from the suspension of the Woodford Equity Income fund continues, the latest edition of FE Trustnet Magazine focuses on liquidity issues. In this month’s cover story, Rebecca Jones finds £16.4bn has flowed from UK funds over the past year and asks if it could cause a Northern Rock-style run on the sector, while Hannah Smith looks at some of the illiquid areas of the market that the closed- ended structure of investment trusts allows them to access. I look back Anthony Luzio Editor T: 0207 534 7652 FE Trustnet Magazine will take a break for summer but we will be back in September. Until then, enjoy reading, Having bond exposure in a world of uncertainty Multi-millionaires Data hub The ability for income-seekers to invest in equities and bonds can be beneficial, particularly in the current climate, says Henderson High Income Trust’s David Smith Javier Otero Art direction & design W: www.feedingcrows.co.uk Editorial Gary Jackson Editor (FE Trustnet) T: 0207 534 7680 Rob Langston News editor T: 0207 534 7696 Eve Maddock-Jones Reporter T: 0207 534 7676 Mohamed Dabo Reporter T: 0207 534 7634 Photos supplied by iStock asks if multi-manager funds are worth the extra charges, Square Mile’s Daniel Pereira reveals why he is buying the T. Rowe Price Global Focused Growth Equity fund and Unicorn UK Growth’s Alex Game names three UK stocks that are disrupting established industries. Anthony Luzio Editor Contents CONTACTS: 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 at the warning signs about Woodford that the financial press missed and ask how this should affect your investment process in the future. Amid the ongoing controversy, John Blowers asks whether DIY investing has become too risky. In our regular columns, Adam Lewis P. 20-23 The high charges on multi- manager products ensure the fund houses will be taken care of. But, asks Adam Lewis, do they really offer value for money to the end investor? P. 38-45 The naked emperor 16 Parched! Rebecca Jones investigates whether the suspension of Woodford Equity Income could be the “canary in the coal mine” of a bigger liquidity crisis P. 4-11 Streaming the future Scottish Mortgage’s Tom Slater considers Amazon’s prospects in the changing world of new media P. 12-15 Stranger things Hannah Smith names three trusts investing in obscure areas that would be completely off-limits were it not for their closed-ended structure P. 16-19 (Don’t) do it yourself The controversy over Neil Woodford has highlighted the problems of DIY investing. John Blowers asks – is it worth the risk? Taking on the establishment Unicorn UK Growth’s Alex Game names three UK stocks that are disrupting established industries P. 24-31 P. 56-57 Fund, pension, trust P. 32-37 P. 46-47 P. 48-55 Anthony Luzio attempts to explain why no one in the financial press spotted potential problems with the Woodford Equity Income fund until it was too late Rathbone Global Opportunities, Investec Diversified Income and Fidelity China Special Situations find themselves under the spotlight this month In numbers: Woodford Equity Income’s liquidity crunch What I bought last 48 Square Mile’s Daniel Pereira says T. Rowe Price Global Focused Growth Equity’s punchy target means it is not for the faint-hearted P. 58-59