Trustnet Magazine Issue 42 JULY 2018 | Page 2

Issue 42 / July 2018 FE Trustnet magazine Putting it in reverse Drawing down your pension pot AGE-OLD PROBLEMS ONE SIZE FITS ALL? OLD BEFORE THEIR TIME Threats to a comfortable retirement Is auto-enrolment working? Junior SIPPs under the spotlight Fund, Pension, Trust / Sector Profile / Stockpicker / What I Bought Last ISSUE 42 CREDITS TRUSTNET MAGAZINE (FORMERLY INVESTAZINE) IS PUBLISHED BY THE TEAM BEHIND FE TRUSTNET IN SOHO, LONDON Editor’s letter N ew contributor Danielle Levy kicks off this issue with a beginner’s guide to drawdown. If you have been sensible and spent your working life paying significant sums into your pension, your retirement marks the time when you can finally reap the rewards of your hard work. However, you need to work out a drawdown strategy that is right for you, depending on your investment experience, attitude to risk, cost of living and a variety of other factors. AltRetire’s John Blowers says that even if you have built up a sizeable pension pot, this doesn’t mean you are home and dry – in his regular column, he looks at some of the biggest threats to a comfortable retirement. We go from one end of the pensions life cycle to the other as I investigate whether it is worth kickstarting your child’s pension by opening a Junior SIPP. Whether you will need to take this step depends to some extent upon the success of the auto-enrolment scheme; Hannah Smith assesses its progress so far. In our regular columns, Tilney’s Jason Hollands reveals which fund he is using to complement a typical US product skewed towards the tech stocks dominating the S&P 500, while Blue Whale Capital’s Stephen Yiu goes the opposite way and names three FAANG stocks he thinks still have plenty of bite. Have a great summer, 8 child’s pension an early leg-up. But, asks Anthony Luzio, is it wise to deprive them of such a large pot of money for close to 60 years? Age-old problems What I bought last Contents WEBSITE: www.trustnet.com EMAIL: editorial@financialex- press.net CONTACTS: Anthony Luzio Editor T: 0207 534 7652 P. 19-23 Javier Otero Art direction & design 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 Henry Scroggs Reporter T: 0207 534 7692 Sales Richard Fletcher Head of publishing sales T: 0207 534 7662 Richard Casemore Account manager T: 0207 534 7669 Photos supplied by iStock Cover illustration: Javier Otero Anthony Luzio Editor Data hub Crunching the biggest trends down into figures P. 24-25 Fund, pension, trust Putting it in reverse Danielle Levy considers your options when the time comes to stop paying money into your pension and start drawing it down P. 2-7 Monks – growth from different perspectives James Budden says Monks Investment Trust’s diverse and measured take on global growth could make it a cornerstone of any investor’s portfolio P. 8-11 One size fits all? Hannah Smith finds out if auto- enrolment can hope to solve the many different retirement issues of its vast number of members P. 13-16 Old before their time A Junior SIPP could give your Baillie Gifford Global Discovery, 3i Infrastructure and Middlefield Canadian Income find themselves under the spotlight this month P. 26-31 Flexible or weak? The wide remit afforded to IA Flexible Investment funds lets them invest where they want, but makes meaningful comparisons impossible, writes Adam Lewis P. 32-39 AltRetire’s John Blowers attempts to solve some of the biggest problems you are likely to face in retirement P. 40-45 Plenty of bite While many analysts warn the FAANG stocks are expensive, Blue Whale Capital’s Stephen Yiu says the market could be underestimating their potential P. 46-47 Tilney’s Jason Hollands says Conventum Lyrical would complement a US fund skewed towards the usual suspects that dominate the S&P 500 P. 48-49 40