Trustnet Magazine was launched just over a year ago with a remit of being easy to understand by people with a limited knowledge of investing and attempts to offer something lighter than the main FE Trustnet website’s focus on data. 
We hope you have enjoyed reading Trustnet Magazine over the past year and you can expect to see more of the same in 2016.
However, we understand that many of you can’t view the magazine behind filters on your workplace IT systems – we may change the platform hosting it in the new year in order to rectify the situation.
Without further ado, here are our favourite stories of 2015.
The wedding crasher
Adam Lewis received numerous plaudits for this story about how he plans to use investment trusts to fund his daughters’ weddings.
Although his eldest child is only three, he said that “thanks to her love of all things Disney” she tends to practice getting married five times a week – which has led him to worry about how he will pay for it.
He decided it would be foolish to put off opening a Junior ISA any longer and narrowed down his choice of investment trusts to two options – Fidelity China Special Situations and the Woodford Patient Capital Trust, eventually opting for the latter.
This didn’t solve all his problems though: “Of course Elsie may not want to get married in 18 years; she may want to put the money towards a house or a car. Or, if I asked right now, a princess’s castle…”
When the music stops
Head of Trustnet Direct John Blowers’ ongoing series on retirement has proved to be the most consistently popular part of the magazine.
This article, about switching the focus of your pension portfolio from growth into income was the most popular of the lot.
“It is a testament to the marketing of UK retail platforms that people pile billions of pounds into their SIPPs without asking how to get it out again,” he said.
“Most platforms rely on you turning your investments into cash and then moving it into your bank account, but if you hold many investments, which ones should you sell? It all sounds like hard work, when you’re supposed to be… well, retired.”
Blowers went on to look at the benefits of target date funds and drawdown in this situation, as well as the threat of sequencing risk.
Game changer
Staying on the theme of pensions, Cherry Reynard reviewed the options available to you if your circumstances change drastically after you have already retired.
While divorce, care home costs and grown up children are well known threats to your income, truly unexpected events could hit you at any time.
“One adviser reported having to advise a client on releasing money when their teenage son had to be bailed out of prison,” she said.
While the new pension freedoms have helped, they are not of much use if you are already locked into an annuity.
The introduction of a secondary annuities market next year may offer you the chance to get your hands on a lump sum, but Aegon’s Steven Cameron warned this is not a decision that should be taken lightly and that the best course of action is probably to ensure you are prepared for any eventuality in the first place.
Bond bombshell
Possibly the biggest macro event in 2015 was the Federal Reserve’s decision to raise interest rates for the first time in almost 10 years.
Although the 25bps rise hasn’t caused a seismic shift in markets, further hikes next year are likely to be a formality, which will be detrimental to fixed income. In this article, Adam Lewis ran the rule over which bond sectors and individual funds are best placed to navigate the volatility.
Tim Cockerill, head of collectives at Rowan Dartington, concluded: “We are cautious on the whole fixed income sector right now and if we were looking to buy the asset class, it would be strategic bonds. The flexibility these funds give, especially around duration, provides investors with the best chance of preserving capital.”
The X Factor
In this article, Pádraig Floyd attempted to find out just what it is that makes a good fund manager.
While industry experts such as Chelsea Financial Services’ Darius McDermott say that nine times out of 10, a good manager will be someone with a track record, occasionally they will go for someone new.
Mark Dampier, head of research at Hargreaves Lansdown, said he doesn’t just review a fund manager’s performance record when researching them, but looks for the ability to think laterally.
“I look at their degree, as a straight economics student may be too convinced of their own ability,” he said. “Whereas, if they have a different way of thinking – through having studied politics and economics, history or English – it may help them with how well they reason out situations.”
Adrian Lowcock, head of investing at AXA Wealth, finished the article by offering seven criteria to help determine the ability of a fund manager.
