Trustnet Magazine 58 January 2020 | Page 2

Editor’s letter Issue 58 / January 2020 W RISK OF DEFAULT The drawbacks of the default pension fund LEAVING HOME Why income investors should look outside the UK SIPP BY SIPP A beginner’s guide to setting up a SIPP Fund, Pension, Trust / Sector Profile / Stockpicker / What I Bought Last ISSUE 58 CREDITS TRUSTNET MAGAZINE IS PUBLISHED BY THE TEAM BEHIND TRUSTNET IN SOHO, LONDON WEBSITE: EMAIL: editorial@fefundinfo. com e are regularly reminded that we are not saving enough for our old age, but have you ever wondered what retirement would actually look like if you haven’t paid enough into your pension? In this month’s cover story, Hannah Smith looks at the example of Sarah, a 58-year- old mother of three who always had good intentions when it came to saving for retirement, but who found life always got in the way. Unfortunately, her story is an all-too familiar one. It is not all doom and gloom though, as Laura Miller Is there a liquidity problem Leaving home in UK small cap? Income investors may be better Anthony Luzio Editor T: 0207 534 7652 Javier Otero Art direction & design W: 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 In our regular columns, Waverton’s Luke Hyde-Smith names the trust he is using to diversify away from equities and bonds, BMO Global Asset Management’s Jamie Jenkins picks three stocks set to benefit from the increased focus on sustainability and, finally, in this month’s sector focus, I find out why it is so important to take a global outlook when investing for income. Enjoy reading, Anthony Luzio Editor Contents CONTACTS: Editorial Gary Jackson Editor (Trustnet) T: 0207 534 7680 Rob Langston News editor T: 0207 534 7696 Eve Maddock-Jones Reporter T: 0207 534 7676 finds out there is an easy – and free – fix for NEST savers to boost the value of their pension. Staying on this theme, Pádraig Floyd finds out that what are regularly cited as the main weaknesses of pensions could actually be their biggest strengths, while John Blowers reveals how to set up your SIPP. 52 The grim reality Hannah Smith reveals what retirement looks like for a typical NEST saver P. 4-13 Continental blend – the case for European companies Stephen Paice and Moritz Sitte reveal what changes they have made to the Baillie Gifford Henderson Opportunities Trust’s James Henderson explains why liquidity concerns around UK smaller companies may be exaggerated off looking outside the UK for a core fund, writes Anthony Luzio P. 28-31 Costing your retirement expenditure P. 44-49 Data hub For your own good P. 50-51 The lack of choice and flexibility that are cited as the SIPP by SIPP P. 14-19 major weaknesses of pensions could actually be their greatest strengths, writes Pádraig Floyd John Blowers runs through the key points to consider if you want to set up your own SIPP Risk of default P. 32-37 P. 52-59 Fund, pension, trust Keeping it up Allianz Gilt Yield, SYZ Oyster Absolute Return and Edinburgh Worldwide find themselves under the spotlight this month BMO’s Jamie Jenkins names three stocks set to benefit from the increased focus on sustainability P. 38-43 P. 60-61 European Growth Trust since 18 taking charge last year Laura Miller says switching out of the default fund in your pension scheme could be the biggest step you take towards achieving your retirement goals P. 20-27 What I bought last Waverton’s Luke Hyde-Smith reveals which trust he is using to offer diversification away from equities and bonds P. 62-63 50