EDITOR’S LETTER
IN THIS ISSUE
Issue 23 / November 2016
ALTERED STATE
Understanding changes to
the state pension
THE LONG
AND SHORT OF IT
m
oney fro
make m
How to
s
your vice
Using derivatives to hedge
risk in your portfolio
WHAT A DIFFERENCE
A WEEK MAKES
Has Trump’s victory derailed
emerging markets?
ISSUE 23
CREDITS
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SOHO, LONDON.
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D
ONALD TRUMP’S SURPRISE VICTORY IN
THE US ELECTION didn’t come at a great
time in this magazine’s publishing cycle. His
bombastic rhetoric while on the campaign
trail meant his victory necessitated last-minute re-writes to
Adam Lewis’s sector profile on IA Global Emerging
Markets and Cherry Reynard’s piece on where investors are
being compensated for taking risk. While the hope is that, as with Brexit,
most of the fears about the impact on markets – and much else besides –
prove to be unfounded, I can’t help thinking that having to do a couple of
hours’ unpaid overtime won’t be the biggest downside to Trump’s
presidency.
Now on to a much cheerier subject – booze and fags. In this month’s
tongue-in-cheek cover story, I find out how much money Liam
Gallagher would have made if he invested all the money he would
have spent on smoking and drinking since the release of the song
Cigarettes and Alcohol into tobacco and beverage stocks.
Elsewhere, Daniel Lanyon weighs up the benefits of using long/short
strategies to hedge risk, while in our regular columns, John Blowers
makes sense of changes to the state pension, Threadneedle’s Richard
Colwell highlights three stocks that are back on track after appearing
to lose their way and Sarasin & Partners’ Jamie Fletcher reveals how he
is delivering returns that are uncorrelated to equity markets.
2
6
Enjoy reading,
Anthony Luzio
Editor
T: 0207 534 7652
Art direction & design
Javier Otero
W: www.feedingcrows.co.uk
Anthony Luzio
Editor
Trustnet Magazine
Editorial
Gary Jackson
Editor (FE Trustnet)
T: 0207 534 7680
Lauren Mason
Senior reporter
T: 0207 534 7625
Jonathan Jones
Reporter
T: 0207 534 7640
30
Sales
Richard Fletcher
Head of publishing sales
T: 0207 534 7662
Richard Casemore
Account manager
T: 0207 534 7669
Photos supplied by Thinkstock
and Photoshot
Cover illustration: Javier Otero
In association with:
THE LONG AND THE SHORT OF IT Daniel Lanyon weighs up the benefits of using derivatives to hedge risk in
your portfolio P. 2-5 / MAKING THE MOST OF TECHNOLOGY Seilern’s Raphaël Pitoun is looking for companies that
utilise technology to give them a competitive advantage P. 6-7 / CIGARETTES & ALCOHOL Anthony Luzio finds out
how you can profit from your vices P. 8-11 / A FALSE SENSE OF SECURITY With traditional safe haven assets such
as bonds looking overvalued, Cherry Reynard weighs up the options for cautious investors P. 12-15
/ FUND, PENSION, TRUST Premier Multi-Asset Global Growth, JPM Emerging Markets Income and Henderson
Opportunities find themselves under the spotlight this month P. 16-19 / WHAT A DIFFERENCE A WEEK MAKES
Adam Lewis looks at the prospects for emerging markets in the wake of Donald Trump’s election victory P. 20-25 /
ALTERED STATE John Blowers makes sense of changes to the state pension P. 26-29 / LOST AND FOUND
Threadneedle’s Richard Colwell highlights three stocks that are now back on track after appearing to lose their way
P. 30 / WHAT I BOUGHT LAST Sarasin & Partners’ Jamie Fletcher is using KLS Zebra Global Equity Beta Neutral
for returns that are uncorrelated to equity markets P. 31