EDITOR’S LETTER
IN THIS ISSUE
Issue 37 / February 2018
T
FOLLOWING
AMAZON
Tapping the
e-commerce boom
PRICE AND
PREJUDICE
Is value making a
comeback?
KEEP IT
GROWING
The case for taking
risk in retirement
ISSUE 37
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
HE BEST-PERFORMING STOCK ON THE
FTSE ALL SHARE LAST YEAR wasn’t the
UK’s answer to Facebook or Google, nor was it
a miner riding a price rebound in its
underlying commodity. Amid all the talk of a sector in
long-term decline, the index’s top-performer in 2017 was
actually high-street stalwart Games Workshop, with gains
of more than 300 per cent. While the manufacturer of fantasy board games is
by no means a typical store and it makes approximately 70 per cent of sales
from overseas, it still demonstrates what investors could be missing out on if
they tarnish an entire sector with the same brush, as Rebecca Jones finds out
in this issue’s cover feature.
If you like the idea of finding value in out-of-favour stocks, the
good news – according to an article from Cherry Reynard – is that
the conditions look extremely favourable for this type of investing.
However, Adam Lewis says the bad news is that all the easy gains in UK
small caps, which have a higher exposure to the UK consumer, may
have already been made. I look at the other side of the coin as I search for
the best way to tap into the unstoppable rise of internet shopping.
In our regular columns, John Blowers floats the idea of maintaining
the same level of risk throughout your retirement, MitonOptimal’s
Paul Warner reveals why he is adding Montanaro UK Income to his SRI
Balanced Growth portfolio and Gervais Williams names three stocks he
is backing in another out-of-favour sector – oil.
8
22
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
28
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:
DEATH OF THE HIGH STREET Rebecca Jones says the long-term decline of traditional retail doesn’t make
it a no-go area for investors P. 2-5 / AIM FOR THE STARS James Henderson believes the AIM index contains
the next generation of UK companies that could drive the economy for years to come P. 6-7 / PRICE AND
PREJUDICE There are signs the out-of-favour value strategy is coming back into fashion, writes Cherry
Reynard P. 8-10 / REGARDS FROM SHANGHAI Scottish Mortgage Investment Trust’s James Anderson says
Alibaba represents the future of retail P. 12-13 / FOLLOWING AMAZON Anthony Luzio seeks out the best
way to tap the e-commerce boom P. 14-16 / FUND, PENSION, TRUST Polar Capital UK Absolute Equity, F&C
Responsible Income and Capital Gearing Trust find themselves under the spotlight this month P. 18-20 /
MISSED THE BOAT? Anyone who thinks Brexit worries have created a value opportunity in UK small caps may
be a year too late, warns Adam Lewis P. 22-26 / KEEP IT GROWING The notion of de-risking your pension pot
as you approach retirement may have had its day, writes John Blowers P. 28-31 / WELL-OILED Miton’s Gervais
Williams names three oil producers set to benefit from the commodity’s price recovery P. 32 / WHAT I BOUGHT
LAST MitonOptimal’s Paul Warner says Montanaro UK Income is suitable for the group’s SRI portfolios even
though it isn’t marketed for this purpose P. 33