IN THIS ISSUE
EDITOR’S LETTER
magazine
Issue 11/ October 2015
16
SMALL IS
BEAUTIFUL
ER HAVE IT?
DOES YOUR FUND MANAG
Live
and learn
Small is
beautiful
What fund
managers can
teach you about life
Can this sector maintain
its stellar long-term
record?
Behind
the style
Fund management
techniques under the
microscope
ISSUE 11
CREDITS
TRUSTNET MAGAZINE (FORMERLY
INVESTAZINE) IS PUBLISHED BY
THE TEAM BEHIND FE TRUSTNET IN
SOHO, LONDON.
WEBSITE: WWW.TRUSTNETDIRECT.COM
EMAIL: [email protected]
CONTACTS:
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
Senior 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
W
ith the average reader of Trustnet
Magazine male, over 50 and –
judging by most of the comments
made on the FE Trustnet website – rather,
shall we say, “cynical”, it may seem like an
odd decision for this issue’s cover story to
share its name with a glitzy television talent
show whose audience is predominantly female and under the
age of 40.
To put your mind at rest, the title is not a sign of the
dumbing down of this magazine, but refers instead to the
fact that despite the many thousands of articles written by
the team at FE Trustnet and its competitors over the years,
no one has ever produced a definitive list of what exactly
makes a good fund manager.
Is this because what gives them the edge in their chosen
profession is impossible to define – the so-called X Factor?
Pádraig Floyd finds out.
Staying on the theme of fund managers, Phil Scott
examines some of the most popular techniques at their
disposal for picking stocks, while I find out if there are any
lessons they have learnt while managing money that they
can apply to life outside of their job.
This month’s sector focus falls on small cap investment
trusts, while head of Trustnet Direct John Blowers looks at
who the winners and losers will be of proposed changes to
pensions that will remove tax relief on money going in as
well as capital gains and income tax on money coming out.
Meanwhile, Fidelity’s Michael Clark indulges in a bout
of talent-spotting of his own among what he refers to as
“reassuringly expensive” consumer stocks.
Anthony Luzio
Editor
Trustnet Magazine
Small cap trusts have outperformed their open-ended
rivals over the long term, but can they keep it up?
Adam Lewis finds out
P. 16-20
NEW PENSIONS FREEDOMS
– NEW OPTIONS
Investment trusts with a history of increasing their
dividend are one option for retirees who want their
income to keep pace with inflation
P. 22-23
SHORT CHANGED?
Head of Trustnet Direct John Blowers finds out who
will be the biggest winners and losers of the latest
proposed changes to pensions in the UK
P. 25-26
REASSURINGLY EXPENSIVE
Fidelity’s Michael Clark reveals which consumer
stocks he thinks are worth their “expensive” price tag
P. 28
WHAT I BOUGHT LAST
BEHIND THE STYLE
Phil Scott looks at the pros and cons of some of the
most popular fund management techniques
P. 2-3
Pádraig Floyd asks if it is possible to define what
gives the best fund managers the edge over their
competitors
P. 4-7
LIVE AND LEARN
You can learn a lot from fund managers – and not just
about investing, writes Anthony Luzio
P. 8-9
In association with:
James Budden says ignoring the pessimists and
focusing on long-term themes is vital for generating
sustainable returns
P. 14-15
SMALL IS BEAUTIFUL
THE X FACTOR
Enjoy reading,
INVESTING ON
THE BRIGHT SIDE
IN FOCUS
Liontrust Macro Equity Income, JP Morgan
Claverhouse IT and Miton Undervalued Assets find
themselves under the spotlight this month
P. 10-13
Coram Asset Management’s James Sullivan says that
when it comes to value investing, there are few better
options than a Woodford proposition
P. 29
25
SHORT
CHANGED?