Trustnet Magazine Issue 15 February 2016 | Página 2

IN THIS ISSUE EDITOR’S LETTER magazine Issue 15/February 2016 BIG TROUBLE IN BRITTLE CHINA The Chinese market has recently veered from one crisis to another, but does this make it a no-go area for investors? Adam Lewis finds out P. 14-19 T That’s your lot Managing the lifetime allowance No man’s land How to consolidate your pension Scream sequence Mitigating the “silent portfolio killer” ISSUE 15 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 rustnet Magazine received some good news this month when a story by Pádraig Floyd won the Investment Article of the Year prize at the Unbiased Media Awards 2016. His article titled “Back from the Dead” looked at why pension reforms, which at the time had just been introduced, would not be the stake through the heart of annuities that many people had been expecting. Pádraig returns to familiar ground in this edition with an article about the secondary annuities market. Chancellor George Osborne’s decision to extend the pension freedoms to anyone who has already bought an annuity means that from next year, they will be able to sell their policy. As the article on page 6 highlights, however, whether they will receive value for money is a different matter entirely. On page 4, Cherry Reynard looks at another issue brought about by recent changes to the pension rules – what to do if you are approaching the new lifetime allowance. A more traditional problem with pensions is sequencing risk, in which a market slump just before retirement can hit the amount in your pot and the income you receive from it. John Blowers investigates ways to mitigate this, while I look at how this has become an even more difficult task in the face of the deteriorating outlook for bonds. In our regular professional investor columns, James Henderson tips three stocks with a habit of paying special dividends, while Ben Willis reveals which fund he is using as a replacement for government bonds, which he says now offer “return-free risk”. From everyone at what is now officially an award-winning magazine – enjoy reading. Anthony Luzio Editor Trustnet Magazine SCREAM SEQUENCE John Blowers looks at ways to mitigate what is sometimes called “the silent portfolio killer” P. 20-21 SPECIAL ADDITIONS James Henderson says the benefits of holding stocks that pay special dividends are not confined to a boost in income P. 22 WHAT I BOUGHT LAST Whitechurch’s Ben Willis is using the Aviva Multi Strategy Target Income fund as a replacement for government bonds, which now seem to offer “returnfree risk” P. 23 14 BIG TROUBLE IN BRITTLE CHINA NO MAN’S LAND? Anthony Luzio looks at how savers can de-risk their pension portfolios in the face of the deteriorating outlook for bonds P. 2-3 THAT’S YOUR LOT Cherry Reynard examines the options available to savers who are approaching their lifetime pension allowance P. 4-5 ONCE IT’S GONE… In association with: While you will soon be able to sell your annuity, whether you receive value for money for it is another matter entirely, writes Pádraig Floyd P. 6-9 IN FOCUS Legg Mason IF Japan Equity, Ruffer Investment Company and Seneca Global Income & Growth find themselves under the spotlight this month P. 10-13 4 THAT’S YOUR LOT