Trustnet Magazine Issue 11 October 2015 | Page 2

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: 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?