IN THIS ISSUE
EDITOR’S LETTER
magazine
Issue 12/ November 2015
LIGHT AT THE END
OF THE TUNNEL
With the economic recovery gathering pace and the
promise of further QE to come, Phil Scott says things
are looking up for European equities
P. 14-18
I
What to do if your circumstances
change in retirement
End product
The end of the tunnel
On deaf ears
Pensions offering the
best of both worlds
Is Europe finally over
the worst?
Why some people still
avoid pensions
ISSUE 12
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
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Jack Elia
Account manager
T: 0207 534 7698
Photos supplied by Thinkstock and
Photoshot
Cover illustration: Javier Otero
f you have recently retired and have
started to receive annuity payments, it
may be tempting to kick back and relax as
you finally start to reap the benefits of all the
hard work you have put in over the years. As
with most dreams, however, reality can have
a nasty habit of bringing you back down
to earth – whether that is in the form of a divorce, care home
costs or having to bail your teenage son out of prison.
While the first two scenarios are more likely to apply to
you than the final one, one financial adviser told Trustnet
Magazine’s Cherry Reynard a retired client had approached
him asking how to raise the money to deal with this exact
situation. The point is, you never know what is just around
the corner. As a result, this month’s cover story is about
what to do if your circumstances change dramatically after
you retire – and what preparations you can make before
you stop working to ensure you are ready for whatever life
throws at you.
A new law brought in this year that removed the need to
buy an annuity has given pensioners greater flexibility to
cope with changing circumstances – Pádraig Floyd takes a
look at new products that allow investors to take advantage
of these rule changes.
Of course, all of this is academic for anyone who doesn’t
already have a pension. I discover that one-in-10 people
are opting out of auto-enrolment – and some of these
even work in the financial services industry. In our final
pensions story of this issue, John Blowers looks at how
Trustnet Direct users are preparing for retirement and asks
what they would have done differently if they could do it
all again.
Elsewhere, Phil Scott examines the case for investing
in Europe, while FP Crux’s Richard Pease highlights three
stocks that are listed on the continent but that have a
global reach.
Enjoy reading,
Anthony Luzio
Editor
Trustnet Magazine
THE MEANING OF GROWTH
For Schroders’ Philip Matthews, growth is about far
more than just an increase in share prices
P. 20-21
RETIREMENT:
THE STATE OF THE NATION
While most Trustnet Direct users seem well prepared
for retirement, the same cannot be said for the
majority of the UK population
P. 22-23
THE LOST CONTINENT
Richard Pease says investors who are avoiding Europe
due to the dire economic situation are missing out on
some quality global names
P. 24
14
LIGHT AT THE END
OF THE TUNNEL
Rathbones’ David Coombs reveals how he is taking
advantage of battered valuations in emerging markets
P. 25
END PRODUCT
Pensioners can now get the safety of an annuity and
the flexibility of drawdown in a single product, writes
Pádraig Floyd
P. 2-3
ON DEAF EARS
Anthony Luzio finds out why people are ignoring the
warnings and opting out of pensions following autoenrolment
P. 4-5
GAME CHANGER
Cherry Reynard looks at the options available to you if
your circumstances change drastically after you have
already retired
P. 6-9
In association with:
WHAT I BOUGHT LAST
IN FOCUS
Man GLG Undervalued Assets,
HarbourVest Global Private Equity and
Skagen Kon-Tiki find themselves under
the spotlight this month
P. 11-13
4
ON DEAF
EARS