EDITOR’S LETTER
IN THIS ISSUE
Issue 29 / May 2017
SAFE
HOUSE?
Can you afford to gamble
on the election?
HOLD TIGHT…
Sticking with the UK
despite the uncertainty
ABSOLUTE
BEGINNERS
A how-to guide for novice
investors
YOU CAN’T JUDGE
A BOOK…
The problem with IA
Mixed Investment
ISSUE 29
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
T
HE GENERAL ELECTION IS SOMETHING
OF A DOUBLE-EDGED SWORD for financial
journalists. It is an event we are obliged to
cover, but after much analysis and research,
the conclusions are almost always the same – don’t take
any big bets, remain calm and your diversified portfolio
should see you through, whatever the result.
However, judging by the aftermath of the EU referendum – when some
stocks opened by up to 40 per cent lower, before recovering the majority
of losses by the time the market closed – keeping your head while all
about you are losing theirs is easier said than done. In this month’s cover
feature, Pádraig Floyd reveals how to prepare for every election outcome
to ensure you are ready for anything when you wake up on 9 June.
Staying on the theme of the election, Holly Black examines how
markets have traditionally fared under each of the mainstream political
parties, while I find out why fund managers recommend sticking with
the UK despite the growing political uncertainty.
In our regular features, Adam Lewis shines a light on the IA Mixed
Investment sectors, Rathbones’ Jo Rands and Alexandra Jackson name
three AIM stocks they are backing and Nexus IFA’s Kerry Nelson reveals
why she has bought the SVS Church House Tenax Absolute Return
Strategies fund.
Finally, John Blowers goes back to basics with a beginner’s guide to
investing, which, while aimed at novices, could prove just as useful for
experienced readers tempted to be “too clever” if the election throws up
an unexpected result.
16
32
Enjoy reading,
Art direction & design
Javier Otero
W: www.feedingcrows.co.uk
Editorial
Gary Jackson
Editor (FE Trustnet)
T: 0207 534 7680
Rob Langston
News editor
T: 0207 534 7696
Lauren Mason
Senior reporter
T: 0207 534 7625
Jonathan Jones
Reporter
T: 0207 534 7640
Anthony Luzio
Editor
Trustnet Magazine
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:
14
SAFE HOUSE? Despite the Tories’ poll lead, Pádraig Floyd says you can’t afford to gamble on the election result
P. 2-7 / UNDIVIDED DIVIDENDS Henderson’s Ben Lofthouse says investors who rely on the UK for income are
playing a dangerous game P. 8-9 / ELECTORAL DYSFUNCTION Holly Black warns against drawing conclusions
about how a victory for one of the two main parties will affect markets P. 10-12 / AMERICA STILL GREAT AGAIN
Baillie Gifford’s Tom Slater discusses investment opportunities in the US P. 14-15 / HOLD TIGHT… Anthony Luzio
finds out why fund managers recommend sticking with the UK despite the growing political uncertainty P. 16-18
/ FUND, PENSION, TRUST JPM UK Equity Core, CFIC Crux UK and GCP Student Living find themselves under the
spotlight this month P. 20-22 / DON’T JUDGE A BOOK BY ITS COVER Adam Lewis says investors should use the risk
profiles of the IA Mixed Investment sectors as a guide rather than a guarantee P. 24-27 / ABSOLUTE BEGINNERS
John Blowers offers advice to people who are thinking about investing for the first time but don’t know where to
start P. 28-31 / CHANGE AIM Rathbones’ Jo Rands and Alexandra Jackson name three AIM stocks undergoing a
change that should lead to better earnings and cash-flow P. 32 / WHAT I BOUGHT LAST Nexus IFA’s Kerry Nelson
reveals why she has bought the SVS Church House Tenax Absolute Return Strategies fund P. 33