Investment and Retirement Focus Issue 7

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INVESTMENT & RETIREMENT

A Tenet Group Publication Issue 7 | Autumn 2019

A focus on… Guiding your investments in the right direction

Investors should look to Asia for growth Generating ‘natural income’ through multi asset investing Advising on the 100-year life

ALSO IN THIS ISSUE: Why weaker pound has failed to turbocharge the economy The benefits of endurance FLASHFORWARD: Drawing parallels with 1999/2000

F CUS

INVESTMENT & RETIREMENT

A Tenet Group Publication Issue 7 | Autumn 2019

A focus on… Guiding your investments in the right direction

Investors should look to Asia for growth Generating ‘natural income’ through multi asset investing Advising on the 100-year life

ALSO IN THIS ISSUE: Why weaker pound has failed to turbocharge the economy The benefits of endurance FLASHFORWARD: Drawing parallels with 1999/2000

Consistently seeking the brightest opportunities. Threadneedle UK Equities Range

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Important Information. For Professional and/or Qualified Investors only (not to be used with or passed on to retail clients). Past performance is not a guide to future performance. Your capital is at risk. The value of investments can fall as well as rise and your clients may get back less than invested. This material is for information only and does not constitute an offer or solicitation of an order to buy or sell any securities or other financial instruments, or to provide investment advice or services. Issued by Threadneedle Investment Services Limited, Registered No. 3701768 and Threadneedle Asset Management Limited, Registered No. 573204, both registered in England and Wales. Cannon Place, 78 Cannon Street London EC4N6AG, United Kingdom. Authorised and regulated in the UK by the Financial Conduct Authority. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies. 06.19 | J28992 | 2443706

INVESTMENT & RETIREMENT FOCUS | 3

Foreword From the Editor

CONTENTS

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Welcome to the Autumn edition of Investment & Retirement Focus. Warning signs from financial markets suggest a recession may be imminent…The latest raft of economic statistics has shown that the global economy faltered during Q2, stoking fears of a downturn. Downgrades to global growth forecasts reflect this darkening scene, for more on this article see pages 4 & 5. In a world of low interest rates, Hugh Young, Managing Director of Aberdeen Asia at Aberdeen Standard Investments discusses why investors should look to Asia for growth. Steven Andrew is manager of the M&G Episode Income Fund, a fund designed to provide growing income together with capital growth of 2-4% on average per year over any three-year period. He attempts to meet these objectives by the application of a global multi asset approach involving dynamic and diversified investment across and within asset classes. Steven’s article seeks to show how your clients may generate regular income and capital growth through multi-asset investing. Prudential look at Centralised Retirement Propositions (CRPs) and suitability reviews and have some hints and tips from Rory Percival including a template you should consider when looking at drawdown for clients. Retirement interest only (RIO) mortgages and standard interest only lifetime mortgages are similar, as they allow your clients to pay the interest on the loan monthly. However, there are significant differences. Learn more from Just’s article on page 13. Investors remain cautious and according to Simon Evan- Cook, Senior Investment Manager for Premier’s multi-asset funds, they’ve had a decade of FOJI (Fear of Joining In). In this article, he considers the dilemma still facing investors; whether to invest now. On page 19, Invesco’s Henley-based European Equities team look at the widening disparity of valuations within the European market and how this is impacting risk within portfolios. Canada Life’s article provides a summary of the final rules and guidance from the FCA retirement outcome review consultation. I hope you find this edition informative and supportive with the excellent and varied selection of articles supplied by Tenet’s provider partners. Kind Regards Cristina Marketing Consultant

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The Outsourced Marketing Department -  Recessionary fears grow

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Schroders -  Why weaker pound has failed to turbocharge the economy

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Vanguard - The benefits of endurance

14

22-23 BlackRock -

Central banks support markets amid trade risks

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BMO Global Asset Management - Retirement options

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EDITOR Cristina Giovanelli

Tenet Group Limited, 5 Lister Hill, Horsforth, Leeds, LS18 5AZ Tel 0113 239 0011 Fax 0113 258 6959

This publication is for internal purposes only and is not intended as an advertisement. As a result this should not be issued in any form to clients. Not all the products in this feature are the responsibility of the Tenet Group Limited. Terms and Conditions. Although every effort has been made to ensure the accuracy of the information contained in this publication, The Tenet Group cannot accept responsibility for any errors it may contain. The Tenet Group cannot be held responsible for the loss or damage of any material, solicited or unsolicited. No reproduction of any part of this publication, in any form or by any means, without prior written consent from The Tenet Group. The views ex- pressed in this publication do not necessarily reflect those of the advertisers or the publishers.

Recessionary fears 4 | INVESTMENT & RETIREMENT FOCUS

The latest batch of economic statistics has shown that the global economy faltered during the second quarter, stoking fears of a significant downturn. This gloomy picture was reflected in downgrades to global growth forecasts for both this year and next when the International Monetary Fund (IMF) released its latest soothsaying in mid-July. The IMF also stressed that risks to growth remain skewed to the downside, with an escalation of US-China trade tensions and a disorderly Brexit cited as major risk factors. Policymakers have begun to respond with the US Federal Reserve (Fed) cutting interest rates for the first time in over a decade, but will this be enough to revive global economic fortunes and stave off recession?

Second quarter growth weak across Europe After a relatively positive start to 2019, second quarter gross domestic product (GDP) >Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36

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