Trustnet Magazine Issue 10 September 2015 | Page 2

EDITOR’S LETTER magazine Issue 10/ October 2015 IN THIS ISSUE GETTING THE GROWTH HABIT James Budden says that not all growth is the same. Monks Investment Trust distinguishes between four different types P. 14-15 A new nightmare It’ll never happen… Ever get the feeling you’ve been here before? The biggest black swan events in history Emergency markets A falling knife or a buying opportunity? ISSUE 10 CREDITS TRUSTNET MAGAZINE (FORMERLY INVESTAZINE) IS PUBLISHED BY THE TEAM BEHIND FE TRUSTNET IN SOHO, LONDON. WEBSITE: WWW.TRUSTNETDIRECT.COM EMAIL: [email protected] CONTACTS: General Josh Ausden Head of publishing content T: 0207 534 7661 Anthony Luzio Editor T: 0207 534 7652 Art direction & design Javier Otero W: www.feedingcrows.co.uk Editorial Gary Jackson Editor (FE Trustnet) T: 0207 534 7680 Alex Paget News editor T: 0207 534 7697 Daniel Lanyon Reporter T: 0207 534 7640 Lauren Mason Reporter T: 0207 534 7625 Sales Richard Fletcher Head of publishing sales T: 0207 534 7662 Richard Casemore Account manager T: 0207 534 7669 Jack Elia Account manager T: 0207 534 7698 Photos supplied by Thinkstock and Photoshot Cover Illustration: Javier Otero EMERGENCY MARKETS N ow the post-election euphoria has died down and Ed Miliband has settled into his role of prime minister, world leaders have turned to the “Edstone”, now installed in Downing Street’s rose garden, for clues as to what direction the coalition government of Labour, the Lib Dems and the Scottish National Party will take the UK in over the next five years. Sound ridiculous? It was just over four months ago that the opinion polls were predicting this exact scenario, so while most fund managers believe a referendum on Britain’s membership of the EU is unlikely to result in a “Brexit”, if this year has taught us anything it is that you shouldn’t take anything for granted. In this month’s cover story, Phil Scott looks at what is likely to happen if the British public votes to unravel four decades of integration with Europe. The big story of the summer has been the crash in China and its effect on other markets across the globe. I take a look at some of the comparisons made between the events of 24 August and the Asian debt crisis of the late 1990s to see if they stand up to scrutiny, while Cherry Reynard examines the meaning of the term “black swan event” and analyses some of the most notable examples from history. Meanwhile, Adam Lewis takes a timely look at emerging markets and asks the experts whether the recent hit they have taken should be taken as a buying signal or a sign it is time to – like a post-election Ed Miliband – cut your losses and run. Adam Lewis takes a timely look at a sector that has crowned a woeful couple of years with an all-out crash P. 16-20 MID-CAP EQUITY FOCUS Following five years of outperformance from mid-cap equities, Schroders asks if this less-researched area of the market has more to offer investors P. 22-23 OPENING THE TRANSFER WINDOW Head of Trustnet Direct John Blowers looks at why it takes so long to transfer investments between platforms – and why the process is finally beginning to speed up P. 25-26 TAKING A PUNT 8 A NEW NIGHTMARE Aviva’s Chris Murphy reveals his picks for the Rugby World Cup and what their equivalents would be in the UK stock market P. 28 WHAT I BOUGHT LAST IT’LL NEVER HAPPEN… Cherry Reynard looks at some of the biggest black swan events in history P. 2-3 Gary Potter, co-head of multi-manager at F&C Investments, explains why he is backing Majedie US Equity P. 29 NEXT EXIT? Enjoy reading. Anthony Luzio Editor Trustnet Magazine Phil Scott considers the implications for investors if a referendum on Britain’s membership of the EU produces an unexpected result P. 4-7 A NEW NIGHTMARE Comparisons between the Asian debt crisis of the late 1990s and the recent market crash in China may be wide of the mark, writes Anthony Luzio P. 8-9 In association with: IN FOCUS Schroder UK Dynamic Smaller Companies, Aberdeen New Dawn Investment Trust and Jupiter Merlin Income find themselves under the spotlight this month P. 10-13 16 EMERGENCY MARKETS