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.
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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
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Head of publishing sales
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Account manager
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Account manager
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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