Trustnet Magazine 60 March 2020 | Page 2

Editor’s letter Issue 60 / March 2020 T For how long can star managers outperform? WHERE ARE THEY NOW? Why the best funds of the 2000s collapsed in the 2010s COLLECTING COINS How to make money from your hobbies LAST MAN STANDING The impact of consolidation in the platform industry Fund, Pension, Trust / Sector Profile / Stockpicker / What I Bought Last ISSUE 60 CREDITS TRUSTNET MAGAZINE IS PUBLISHED BY THE TEAM BEHIND TRUSTNET IN SOHO, LONDON WEBSITE: www.trustnet.com EMAIL: [email protected] he publishing cycle of this magazine means I commission articles from journalists about a month before we go to press. This means that, from time-to-time, something unexpected happens that makes the entire issue appear redundant before it has even hit the virtual newsstand. This is obviously one of those occasions. Yet while I don’t wish to play down the human impact of the coronavirus, the lack of coverage we have given it in this issue should serve as a reminder – despite the biggest one-day fall in the FTSE since 1987 and the growing Contents 44 CONTACTS: Anthony Luzio Editor T: 0207 534 7652 Javier Otero Art direction & design W: [email protected] 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 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 Going the distance Anthony Luzio attempts to find out how long a top fund manager can be expected to maintain a period of outperformance P. 4-13 The future of manufacturing A new generation of businesses in the Scottish Mortgage trust are reshaping our world by reinvigorating the manufacturing industry 18 P. 14-21 Where are they now? likelihood that the global economy will enter a recession, the principles of successful investing haven’t changed: hold a diversified portfolio appropriate for your time horizon and attitude to risk. But just as important is resisting the urge to do anything stupid when everyone else is panicking – it is natural for stock markets to fall as well as rise and after the longest bull run on record, we were always due a major correction. While I wouldn’t be so foolish as to attempt to call the bottom of the market or the severity of any downturn, at times like this I feel it is worth reacquainting yourself with the investment advice of Berkshire Hathaway chairman Warren Buffett: “Be fearful when others are greedy and greedy when others are fearful.” Enjoy reading, The secret ingredient Collecting coins Jamie Ross of the Henderson EuroTrust talks through his stock-selection process using health, nutrition and materials firm DSM as an example Pádraig Floyd finds out how you can make money from your hobbies problem of global water sustainability P. 28-31 Data hub The comeback kids Staying power: The challenges (and rewards) of long-term outperformance Cherry Reynard reveals which fund managers have bounced back from a potentially career-ending chain of events P. 32-37 Fund, pension, trust The best-performing funds of the 2000s lost money in the 2010s. Rebecca Jones finds out if they are ready to bounce back Lazard Global Thematic Focus, Dunedin Income Growth and JPMorgan China Growth & Income find themselves under the spotlight this month P. 22-27 P. 38-43 P. 44-49 P. 50-51 Anthony Luzio Editor P. 62-63 What I bought last Smith & Williamson’s James Burns says the Nippon Active Value Fund will unlock value through taking an activist approach to Japanese small caps P. 64-65 Last man standing John Blowers investigates how the wave of consolidation in the platform industry will affect the end investor P. 52-61 Not a drop to drink Pictet’s Stephen Freedman names three stocks that can help tackle the growing 28