EDITOR’S LETTER
IN THIS ISSUE
Issue 31 / July 2017
NO CONTEST SUN TRAP
TProperty trusts
vs funds The pitfalls of buying
a house abroad
HISTORY
REPEATING ITSELF
IA Property’s recurring problems
CAN YOU RELY ON BUY-TO-LET IN RETIREMENT?
I
ISSUE 31
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 CAN BE DIFFICULT FOR TRUSTNET
MAGAZINE to cover asset classes outside of
our usual patch of funds, trusts and equities
without drawing accusations of bias – as a
free magazine, we make our money from selling adverts
and our only customers so far have been asset
management groups.
You may wish to bear this in mind when reading my cover story on
the wisdom of basing your retirement portfolio on buy-to-let. This
is not supposed to be a hatchet job on an asset class that doesn’t pay
us for advertising space – it is simply a reflection that while it has
been difficult for landlords not to make money since the turn of the
millenium, the prospect of rising interest rates, stagnant house-price
growth and tax changes will necessitate more of a business-minded
approach – and an awareness of many practical problems you may not
get with other investments.
There is a whole other layer of complications if you are thinking
of buying somewhere abroad – as Cherry Reynard finds out in “Sun
trap”. Elsewhere, Holly Black weighs up the pros and cons of gaining
exposure to property via funds and investment trusts, while Adam Lewis
examines the prospects for the IA Property sector after a reoccurrence of
previous liquidity problems.
Away from the major theme of this issue, John Blowers finds out
how you can help soften the blow of tuition fees on your children,
Merchants Trust’s Simon Gergel names three stocks whose prospects are
being enhanced through restructuring and Investment Quorum’s Lee
Robertson reveals why he has bought Fidelity China Special Situations.
24
16
14
Enjoy reading – from a hopefully not-too-biased editor.
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:
BUILT ON SAND? Anthony Luzio finds out why buy-to-let may not be the most solid foundation on which to base
your retirement portfolio P. 2-6 / THE DIGITAL JEWEL IN THE CROWN India is laying the groundwork for the
largest digital and financial network in the world, writes Pacific Horizon Investment Trust’s Ewan Markson-
Brown P. 8-9 / SUN TRAP Cherry Reynard says anyone thinking of spending their retirement years abroad
could be in for a nasty surprise if they don’t do their research P. 10-12 / THE ABE UP OUR SLEEVE Shinzo Abe’s
economic reforms have led Bankers IT’s Alex Crooke to increase exposure to the “sleeve” of his portfolio focused
on Japan P. 14-15 / NO CONTEST Holly Black reveals why trusts have a clear edge over funds when it comes to
property P. 16-18 / FUND, PENSION, TRUST Neptune UK Mid Cap, T. Rowe Price US Smaller Companies Equity
and Finsbury Growth & Income are under the spotlight this month P. 20-22 / HISTORY REPEATING ITSELF
Adam Lewis asks if investors should rethink their property exposure after the liquidity problems of 2008 reared
their head again P. 24-27 / BRIGHT & BANKRUPT Graduates now leave university with debts of up to £54,000.
John Blowers finds out how you can soften the blow for your children P. 28-30 / RE-STRUCTURAL GROWTH
The Merchants Trust’s Simon Gergel names three stocks whose prospects are being enhanced through
restructuring P. 32 / WHAT I BOUGHT LAST Investment Quorum’s Lee Robertson reveals why he has bought
Dale Nicholls’ Fidelity China Special Situations trust P. 33