EDITOR’S LETTER
IN THIS ISSUE
Issue 38 / March 2018
Why complaints
about SIPPs are
surging
IN A STATE
Retirement without
a private pension
THE MAGIC NUMBER
How much can
you draw down in
perpetuity?
YOUR INFLEXIBLE
FRIEND
Why pensions have
the edge over ISAs
ISSUE 38
CREDITS
TRUSTNET MAGAZINE (FORMERLY
INVESTAZINE) IS PUBLISHED BY
THE TEAM BEHIND FE TRUSTNET IN
SOHO, LONDON.
WEBSITE: WWW.TRUSTNET.COM
EMAIL: [email protected]
CONTACTS:
Anthony Luzio
Editor
T: 0207 534 7652
T
HE SELF-INVESTED PERSONAL
PENSION WOULD APPEAR TO BE the
perfect product for the era of “freedom and
choice”, meaning clued-up investors no
longer have to leave their money languishing in a
default fund run by trustees more concerned with
limiting losses and keeping their jobs than actually
beating the market. However, with the opportunity to make more
money comes the opportunity to lose it and, with a number of failed
investments leading to a surge in complaints about SIPPs, this raises the
question: are these products fundamentally flawed or is their name
being tarnished by a handful of bad apples? Pádraig Floyd finds out in
this month’s cover feature.
Elsewhere on the theme of retirement, I investigate whether there
is a set amount of money you can draw down from your portfolio in
perpetuity without harming its real value, John Blowers weighs up the
options for anyone relying on the state pension in their old age and
Daniel Lanyon discovers that pensions still have the edge over ISAs,
despite their lack of flexibility.
This month’s sector focus falls on emerging markets as Adam Lewis
finds out all the indicators appear to be pointing in the same direction:
up. Finally, in our regular columns, The Share Centre’s Graham
Spooner names three out-of-favour stocks that may pique the interest of
contrarian investors and Chelsea Financial Services’ Darius McDermott
reveals why he has bought the Mirabaud Equities Europe ex UK Small &
Mid fund.
22
14
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
Jonathan Jones
Senior Reporter
T: 0207 534 7640
Mai Sardon
Reporter
T: 0207 534 7625
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
Anthony Luzio
Editor
8
SIPPING UP Pádraig Floyd investigates what is behind the surge in complaints about the Self-Invested
Personal Pension P. 2-5 / BACK FROM THE DEAD Janus Henderson’s David Smith says some of the best value
opportunities lie in companies that have been “disrupted” by technology P. 6-7 / YOUR INFLEXIBLE FRIEND
Pensions are often regarded as cumbersome and boring, but they still have the edge over ISAs for retirement
saving, writes Daniel Lanyon P. 8-10 / SAINTS GOES MARCHING ON Managers of The Scottish American
Investment Company Toby Ross and James Dow tell Heather Farmbrough how they unearth businesses
that can deliver growth and income P. 12-13 / THE MAGIC NUMBER Anthony Luzio attempts to find out what
percentage of your pension pot you can draw down in perpetuity P. 14-16 / FUND, PENSION, TRUST First State
Diversified Growth, Merchants Trust and Standard Life Investments UK Equity Income Unconstrained find
themselves under the spotlight this month P. 18-20 / ONE DIRECTION Adam Lewis says all the indicators for
emerging markets appear to be pointing in the same way: up P. 22-26 / IN A STATE John Blowers weighs up
the options for anyone relying on the state pension for a significant portion of their retirement income P. 28-31
/ QUITE CONTRARY The Share Centre’s Graham Spooner outlines three contrarian stocks in which buying
opportunities may have recently opened P. 32 / WHAT I BOUGHT LAST Chelsea Financial Services’ Darius
McDermott says Mirabaud Equities Europe ex UK Small & Mid has been overlooked by investors P. 33