Trustnet Magazine Issue 34 November 2017 | Page 2

EDITOR’S LETTER 14 Issue 34 / November 2017 Why th industry e missed a has with draw trick down THE ADVICE AGE COMETH The Pensions Advice Allowance explained TAKING BACK CONTROL Managing your retirement income ON THE RIGHT TRACK? Can you rely on passives in your pension? ISSUE 34 CREDITS TRUSTNET MAGAZINE (FORMERLY INVESTAZINE) IS PUBLISHED BY THE TEAM BEHIND FE TRUSTNET IN SOHO, LONDON. WEBSITE: WWW.TRUSTNETDIRECT.COM EMAIL: [email protected] CONTACTS: T HIS ISSUE OF TRUSTNET MAGAZINE focuses on the impact of pension freedoms, which were introduced two-and-a-half years ago now. According to Pádraig Floyd, writing in this month’s cover story, it has been something of a missed opportunity for the industry – not only have pension providers failed to offer new products to plug the gap left by plummeting annuity sales, but there has also been a worrying trend of savers pulling their money out at retirement without having the faintest idea of what to do with it. This latter problem was one that the Pensions Advice Allowance was supposed to address, but as Maggie Williams finds out, stringent rules surrounding its withdrawal have prevented take-up. John Blowers also highlights some of the major considerations for investors who want to take full responsibility for their retirement income when they enter drawdown, while in this month’s final story on pensions, I look at whether passives are a suitable product for this type of investing. In our regular columns, Adam Lewis finds out whether all the easy gains in Japan have already been made, Evenlode Income’s Hugh Yarrow names three stocks that streamline their customers’ businesses and Aviva Investors’ Thomas Wells reveals why he is using Baillie Gifford Japan to complement an existing holding in GLG Japan Core Alpha. IN THIS ISSUE 8 22 14 26 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 Rob Langston News editor T: 0207 534 7696 Lauren Mason Senior reporter T: 0207 534 7625 Jonathan Jones Reporter T: 0207 534 7640 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: DRAWING A BLANK Pádraig Floyd says the industry and end consumer alike are still struggling to make sense of pension freedoms P. 2-5 / WOULD YOU LIKE THAT IN A SMALL, MEDIUM OR LARGE, SIR? Henderson’s Neil Hermon offers three reasons why it can be more lucrative to invest in smaller firms than their larger counterparts P. 6-7 / THE ADVICE AGE COMETH Maggie Williams says stringent rules around the Pensions Advice Allowance appear to be hampering its take-up P. 8-10 / DEPENDABLE DIVIDENDS The co-managers of SAINTS believe they have identified the characteristics of businesses best placed to offer a consistent payout to shareholders P. 12-13 / THE RIGHT TRACK Is it a good idea to invest your pension pot in passives? Anthony Luzio finds out P. 14-16 / FUND, PENSION, TRUST Trojan Global Equity, BlackRock Smaller Companies IT and Edinburgh Investment Trust find themselves under the spotlight this month P. 18-20 / ON THE RISE The Japanese market is rallying after years in the doldrums – but, asks Adam Lewis, have investors missed out on the easy gains? P. 22-25 / TAKING BACK CONTROL John Blowers highlights some of the major considerations for investors who want to take full responsibility for their retirement income P. 26-28 / MEANING BUSINESS Evenlode Income’s Hugh Yarrow names three stocks that help streamline their customers’ businesses, helping them cope with a changing world P. 30 / WHAT I BOUGHT LAST Aviva Investors’ Thomas Wells is using the Baillie Gifford Japan fund to complement an existing holding in GLG Japan Core Alpha P. 31