Trustnet Magazine Issue 14 January 2016 | Page 2

IN THIS ISSUE EDITOR’S LETTER magazine Issue 14/ January 2016 2 How to update your portfolio Admit defeat Mixing it up The test of time Should you buy a multi-manager fund? Flexible Investment in focus Why trusts suit long term investing ISSUE 14 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 TIME TO ADMIT DEFEAT? Enjoy reading, The Asian Total Return trust is one option for investors who want exposure to Asia’s structural growth story, but are worried about volatility P. 22-23 A GAME OF THREE HALVES Trustnet Direct’s John Blowers walks through the key stages of pension planning in the post-annuity world P. 25-26 DIVIDE AND RULE Mark Martin reveals a stock he is backing in each of the three silos his Neptune UK Mid Cap fund is split into P. 28 MONTANARO EQUITY INCOME TIME TO ADMIT DEFEAT? Anthony Luzio discovers why experienced investors shouldn’t turn their noses up at multi-manager funds P. 2-3 THE TEST OF TIME Sam Shaw finds out why investment trusts are ideally suited to anyone investing for the very long term P. 4-5 BALANCING ACT Anthony Luzio Editor Trustnet Magazine Your portfolio can quickly become lopsided if you don’t review it on an annual basis, writes Phil Scott P. 6-8 IN FOCUS In association with: Adam Lewis takes a look at the AIC’s new Flexible Investment sector P. 16-20 ABSOLUTE RETURNS FROM ASIAN EQUITIES: A DISTINCTIVE APPROACH B y the time this issue of Trustnet Magazine hits your computer, many of the promises about self-improvement that you made to yourself at the start of the year are likely to be as long-forgotten as the excesses that prompted you to make them in the first place. However, the experts say that one yearly target you ought to keep is to carry out an annual review and rebalancing of your portfolio. In this month’s cover story, Phil Scott finds out how you should go about this. If you read this article, learn a few lessons and promise you won’t forget to put them into practice, before doing exactly that, you are not alone: close to one-quarter of respondents to a recent FE Trustnet poll said they get around to rebalancing their portfolio less than once every two years. In my article on page 2, a selection of industry experts tell me that if you find yourself in this group, you should probably bite the bullet and consider paying the extra level of charges for a multi-manager fund. I thought that would get your attention… Still on the theme of portfolio rebalancing, Sam Shaw explains why you should think about adding an investment trust to the mix if you are putting money away for the long term, while Adam Lewis looks at the AIC’s new Flexible Investment sector. In our regular fund manager columns, Mark Martin reveals a stock he is backing in each of the three silos in his Neptune UK Mid Cap fund, while Apollo’s Ryan Hughes explains why he is using the Montanaro Equity Income fund to reflect his growing optimism on the UK economy. Finally, John Blowers runs the rule over how Trustnet Direct’s new retirement centre can help you to plan each of the three main stages of saving for your pension. MIXING IT UP Unicorn Mastertrust, CC Japan Income & Growth and Fidelity China Special Situations find themselves under the spotlight this month P. 10-13 LIGHT ASSETS Baillie Gifford’s James Anderson explains why a company’s assets don’t necessarily provide a realistic indication of its value P. 14-15 Apollo’s Ryan Hughes is using this small cap fund to reflect his growing optimism on the UK economy P. 29 4 THE TEST OF TIME