Five Experts Select Their Fund Winners
Arthur, Clare, The Independent (London, England)
WITH so many unit trust funds available, investors may find choosing a suitable fund confusing and complicated. As a guide, the Independent on Sunday asked five leading independent investment advisers where they would invest their money.
"I'd choose the Schroder Pacific Growth unit trust. The smaller emerging markets of the Far East have been out of favour for more than two years. But the GDPs of these countries is on average 9 per cent - three times that of the UK - and the stock markets are much cheaper than the UK stock market. The emerging markets' currencies are linked to the US$, which is currently looking stronger than it has for a long time. We also rate the fund's manager, Maggie Lee."
Fund manager: Schroders
Initial charge: 5.2%
Annual charge: 1.25%
Total return over 1 year: 16%
Total return over 3 years: 103%
Total return over 5 years: 272%
Investment strategy: to invest in South-east Asian companies, excluding those in Japan, which can provide sustained growth over the long term.
Kidsons Impey Scott Lang
"My favourite unit trust for 1996 is the Govett UK Safeguard fund. It uses options to guarantee that if the stock market goes down, it will only fall by 2 per cent. But if the stock market goes up, so does the fund. The market is expensive at the moment and could have a correction soon. As a large percentage of investors' funds are normally exposed to the UK, with this fund you can hedge your bets."
Fund manager: John Govett
Initial charge: 5.5%
Annual charge: 1%
Total return over 1 year: 20.3%
Total return over 3 years: N/A
Total return over 5 years: N/A
Investment strategy: to outperform the FT-SE 100 index if it goes up, and to limit any fall to a maximum of 2 per cent if the FT-SE goes down over any three-month period.
Chase de Vere Investments
"I'd go for the Morgan Grenfell European Growth fund. It has outstanding past performance, and as it's a European fund, it will give some diversification to most investors' portfolios. The fund managers invest according to their beliefs, and don't just structure their portfolios in proportion to the size of the various markets. …