Trustnet Magazine 61 April 2020 | Page 2

Issue 61 / April 2020 Editor’s letter T MENTAL WEALTH How the human psyche can hamper returns GREEN SHOOTS Signs that herald the end of a bear market COPING STRATEGIES How global managers have shifted their regional allocation Fund, Pension, Trust / Data Hub / Sector Profile / Stockpicker / What I Bought Last ISSUE 61 CREDITS TRUSTNET MAGAZINE IS PUBLISHED BY THE TEAM BEHIND TRUSTNET IN SOHO, LONDON WEBSITE: www.trustnet.com EMAIL: [email protected] he speed with which the market has reacted to the coronavirus pandemic means it would be futile for a monthly magazine to attempt to focus on the conditions specific to the current crisis, so instead in this issue we are taking a more general look back at previous crashes. In this month’s cover story, I examine the five biggest market collapses over the past 100 years, while Hannah Smith delves into the psychology of investors to see why they so often take the worst course of action at the worst possible Anthony Luzio Editor T: 0207 534 7652 40 which fund she is using to take advantage of the risk/reward dislocation in investment grade bonds. Enjoy reading, Green shoots find themselves under the spotlight this month Data hub P. 34-39 P. 50-51 Sam Shaw reveals the signs that typically herald the end of a bear market P. 26-33 Javier Otero Art direction & design W: [email protected] Fund, pension, trust 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 Photos supplied by iStock Cover illustration: Javier Otero response to the crisis. In our regular columns, John Blowers weighs up your options if the market crashes just as you are about to retire, Mercantile Investment Trust’s Guy Anderson names three stocks he is backing in the UK’s underrated tech sector and BMO’s Kelly Prior reveals 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 time. Staying on this theme, Sam Shaw looks further ahead as she finds out which economic indicators generally herald the end of a bear market and, in this month’s sector focus, Adam Lewis asks IT Global managers how they have adjusted their regional allocation in SVS Church House Investment Grade Fixed Interest, Allianz Strategic Bond and Hipgnosis Songs Crash course Anthony Luzio guides you through the five biggest market crashes of the past 100 years P. 4-13 Worry, but don’t panic James Budden says Baillie Gifford’s calm approach should allow its funds and investment trusts to emerge from the current crisis as robustly as they entered it 18 P. 14-17 In numbers: Crash hits Coping strategies Sucker punched Adam Lewis runs the rule over how global investment trust managers have shifted their regional allocation in light of the coronavirus crisis John Blowers weighs up your options if the market crashes at the point you retire P. 40-49 Hotspot 52 P. 52-61 Mercantile Investment Trust’s Guy Anderson names three stocks he is backing in the UK’s underrated tech sector P. 62-63 Mental wealth What I bought last Hannah Smith delves into human psychology to work out why investors often take the worst course of action at the worst possible time BMO’s Kelly Prior reveals which fund she is using to take advantage of the risk/reward dislocation in investment grade bonds P. 18-25 P. 64-65