www.whatinvestment.co.ukwww.whatinvestment.co.ukWhat FOR Investment A WEALTHIER FUTURE IssueIssue 439 446 October May 2020 2019 £4.50£4.50 Includes the CHINA SUPPLEMENT Long-term opportunities HOW TO RE-BUILD YOUR WEALTH The get-rich slowly investment funds Page 28 9 770263 PassiveTo boldly go ITs to Watch InvestingCould space be the next Infrastructure and UK 953115 Understandinginvestment frontier? the facts growth & income trusts for fromPage the 14 fiction the long-term investor Page 48 05 Page XX >| Editorial What Investment Email format: firstname. Look to the future, not the past [email protected] Editorial Editor-in-chief Lawrence Gosling 020 7250 7027 When there is a significant All the benefits of the rise in Subscriptions decline in the levels of stock most markets during 2019 had [email protected] Alyssia Sutherland 020 7065 7563 markets, fund managers, been wiped out in those first 10 Advertising commentators and historians weeks of 2020. My investments Sales Manager: look for precedents to create are now back to 2017 or 2018 Andrew Dodds 020 7250 7033 some kind of context. levels, so I share the ‘investment Design and production If we can see that something pain’ many of you will be feeling. Phil Turton has happened before, or The one bit of advice which I Stock images: Shutterstock.com something very similar, we feel think many of you will already Bonhill Group Events we can get a better perspective know and will be practicing is not Head of Event Operations (on maternity leave) about what is happening to us to panic. You will hopefully have Nia Beer 020 7250 7064 now; and if we understand that we feel we not sold out as the markets pulled back, Bonhill Group Plc can see some path forward in the future. unless you urgently needed cash. Chief Executive Officer In the current episode I have seen Just as importantly, now is not to make Simon Stilwell 020 7250 7010 comparisons with economic events that switches into investments which might look Group Editorial Director go back to the early 1700s; and by some like they will help you claw back all those Lawrence Gosling 020 7250 7027 measures the impact is worse than the lost gains in a short space of time. What Investment is published by 1929 Wall Street stock market crash and the It is periods like this where some Bonhill plc following Great Depression. unscrupulous investment schemes are Fleet House, 1st Floor, The respected Money Week magazine drew promoting returns or levels of income 59-61 Clerkenwell Road, a convincing parallel to the 1957 US stock significantly above the average of the stock London EC1M 5LA Tel: 020 7250 7010. market crash which combined a recession, a market or cash deposits. deadly outbreak of flu and then large-scale Remember the old adage: “If it looks Average monthly circulation – unemployment. too good to be true…“ and if you see an January to December 2017: 7,240 But how much use is all of this analysis ‘investment’ offering 6,7, 8 or even up to as we look at the value of our investments? 10% income or interest annually be very Advice to Readers: Information carried in What Well, not to put too fine a point on it, I would careful. 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Please accept our Printed in the UK by Stephens & George bottom has arrived. apologies and thank you for your patience Ltd. News agency distribution by Select I received the statement on my pension as we do our best to get your copies to you. Publisher Services Ltd, PO Box 6337, fund in the middle of March, just as the UK Bournemouth BH1 9EH, Tel: 01202 was beginning to being gripped by covid-19 Lawrence Gosling is editor-in-chief of 586848. and it made for sobering reading. What Investment. Follow @whatinvestment on Twitter Like What Investment on Facebook Join What Investment on LinkedIn Follow What Investment on Google+ SUBSCRIBE FOR £39.99* – GET 12 ISSUES FOR THE PRICE OF 10 To take advantage of this offer, visit www.whatinvestment.co.uk/ subscribe or call 020 7250 7037. Please use coupon What Investment code: wi-first-year-offer www.whatinvestment.co.uk WhatInvestment May 2020 3 >>| | Contents: Features May 2020 HOW TO RE-BUILD YOUR WEALTH COVER STORY pages 28-35 14 Investment 48 Investment Is there really potential to Trusts make money in space and Investing in real estate, how do you go about this as infrastructure and an investor? transportation; plus why now is the time to focus on fundamentals and process Page 14 Page 48 SPECIAL SUPPLEMENT China The world’s second largest economy provides good long-term opportunities for the patient investor. Find out how to access them in our 8-page report compiled in conjunction with Fidelity International. 4 WhatInvestment May 2020 www.whatinvestment.co.uk >>| | Contents: Regulars May 2020 News and views 36 Investment Trusts A multi-asset portfolio; a 3 Editorial diversified private/public Look to the future, not the past portfolio; multi-asset value investing; and a fundamental and 6 News & comment ESG aware trust More choice for savers; a mobile SRI platform; Scottish Widows 47 Products and Lloyds complete asset Page 18 Troy Income & Growth transfer; Sanlam’s lockdown Investment Trust and Odyssean events; index-linked bond Investment Trust comeback mooted; Gold attracts record levels of investment; and 80 Analysis Charles Calkin on how to manage The performance and prospects retirement income in a crisis of fine wine as a non-traditional asset class 13 Financial Planning Stephen Jones kicks off our new 82 Last Word Page 24 series with a look at process Peter Elston is concerned that policymakers tackling 16 Wills the covid-19 pandemic are Difficult times require the same underestimating the risk of a preparation as calmer ones depression 18 Outlook The coronavirus lockdown is Performance data an economic calamity, but that 52 Savings & Taxes does not mean that investors cannot start planning for a more Page 80 2020/21 tax rates, mortgage prosperous future calculator and inflation data 20 Financials 53 Unit Trusts & Investment Trusts The unloved banking sector has never looked so cheap Morningstar data covering the performances of all unit trusts 21 Funds over six months, one year, three Fund analysis: Pantheon years and ten years, showing the value of your holdings and where Fund of the month: VT Gravis Page 82 Clean Energy Income your fund ranks across others in the same sector Our independent panel examines two recently launched funds and 75 Exchange Traded Funds what they have to offer investors (ETFs) 24 Stock Picks Morningstar analysis of the performance of a range of ETFs Growth stocks to watch covering the main investment Stocks to tackle the coronavirus markets around the world 26 Opinion 79 Cash Savings/Investment Jump on the algo bandwagon Moneyfacts analysis of the latest The Conscientious Investor savings, cash ISA and NS&I finds an ESG silver lining to the account and bond rates coronavirus cloud www.whatinvestment.co.uk WhatInvestment May 2020 5 >| News United Kingdom | Savings | Allica Bank, RCI Bank & Leeds Building Society New account launches boost choice for savers Allica Bank (www.allica. deposit is an appealing making it into our best simply pay the same rate to bank), clients of which alternative to savers buy tables, it is in the top all customers.