EDITOR’S LETTER
magazine
Issue 16 / March 2016
IN THIS ISSUE
IN FOCUS
Miton UK Multi Cap Income, Personal Assets Trust
and Aviva Investors Multi Strategy Target Income find
themselves under the spotlight this month
P. 12-15
A beginner’s guide to ISAs
Picks of the trade
Taking stock
Under pressure
What the experts are buying
for their ISAs
Should you invest
directly in shares?
What dividend cuts
mean for equity income
000 Front Cover.indd 1
15/03/2016 16:45
ISSUE 16
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
A
nyone new to the financial services
industry could be forgiven for taking
a confused look at their calendar at
around this time of year and wondering how
it is that among spring, summer, autumn
and winter, they have somehow managed
to overlook something as important as
“ISA season” for so long. However, while the industry seems
intent on whipping up a state of panic among investors about
the unthinkable consequences if you fail to use your full ISA
allowance before the 5 April deadline, most industry experts I
spoke to for this issue seem to pay little attention to all the noise.
Their state of relaxation can be attributed to the fact most of them
have been drip-feeding their money into markets over the course
of the year.
While few people will be able to make use of the full £15,240
allowance, investing on a monthly basis removes the discipline
of setting money aside and means your nerves won’t be tested
when the market tumbles – often the very best time to invest.
For further basic tips, turn to Cherry Reynard’s beginner’s
guide to ISAs on page 2. For anyone at the opposite end of the
scale who is feeling confident enough to give fund managers
a run for their money by investing directly in equities, I would
recommend reading Phil Scott’s article on page 8 first.
Many of you will be putting money into IA UK Equity
Income funds – the sector was the Investment Association’s
most popular last year, with net retail sales of about £4.8bn.
Adam Lewis finds out how this area of the market is likely to be
affected by widespread dividend cuts across the FTSE.
In our usual columns, John Blowers looks at methods of futureproofing your retirement plan against further pension raids by the
chancellor, Kames’ Elaine Morgan highlights three stocks that are
using regulatory change as a driver of growth, while Investment
Quorum’s Lee Robertson explains why he has added the Franklin
UK Managers’ Focus fund to his clients’ portfolios.
From everyone at Trustnet Magazine, happy ISA season!
Anthony Luzio
Editor
Trustnet Magazine
In association with:
CHINA: DOOM AND BOOM
Baillie Gifford’s Roderick Snell explains why China could
become one of the world’s best consumption stories
P. 16-17
UNDER PRESSURE
Adam Lewis investigates what impact widespread
dividend cuts across the FTSE will have on the UK
Equity Income sector
P. 18-22
FUTURE-PROOF
YOUR RETIRMENT PLAN
With the government not averse to using pensions to
plug the hole in its balance sheet, John Blowers looks
at how to protect your portfolio against future raids
P. 24-25
18
UNDER
PRESSURE
BY THE BOOK
Elaine Morgan highlights three stocks in the Kames
UK Smaller Companies fund that are using regulatory
change as a driver for growth
P. 27
WHAT I BOUGHT LAST
STOCKS AND STARTS
Cherry Reynard looks at how novice investors can get
the most out of their ISA
P. 2-4
Investment Quorum’s Lee Robertson explains why he
has bought the Franklin UK Managers’ Focus fund
P. 28
PICKS OF THE TRADE
Anthony Luzio asks a selection of industry experts
what they are doing with their ISA this year
P. 6-7
TAKING STOCK
Investing directly in equities is often seen as exciting,
but Phil Scott says you need to do your homework if
you want to become your own fund manager
P. 8-9
HITTING THE
REAL ESTATE HOTSPOT
The Schroder Real Estate Investment Trust offers the
potential for attractive capital and income returns
despite the market turbulence
P. 10-11
10
HITTING THE
REAL ESTATE HOTSPOT