Neil George: Go for Global Income
01/03/2003 12:00 am EST
Few advisors are as worldly as Neil George, who has worked on six continents and covers the entire globe looking for opportunities. He is also one of the most prolific advisors, serving as editor of By George! and the Total Return Advisory, and as a contributing editor to Personal Finance and Wall Street Winners. His top pick for 2003 is a global income fund.
"There’s nothing like getting cold hard cash deposited each month into your brokerage account. For my money-- and yours--there is no current basis for hoping and praying for a market rally. Instead stick to the bond market with some of the best in the biz. We like Pimco and its specialists from Dresdner Bank. They run the Pimco Strategic Global Government Fund (RCS NYSE) which is a closed-end fund trading at or below its net asset value, right on the NYSE.
"This fund has a solid track record of buying and selling quality bonds from the US and around the world that generate hefty dividends that yield over 7.5%. And that also tends to generate some added appreciation as the world’s investors finally come around to the benefits of the bond market. The average duration is less than 5 years and the average credit quality is AA or better. So year in and year out, you’ll be less likely to get a surprise, except for usually the better. Buy RCS as long as the fund trades under a premium of 3%."