Pick of the Pundits: Experts on the different aspects of personal finance talk to Vivien Goldsmith and Maria Scott about the prospects for 1993 as signs of recovery grow firmer: Kean Seager

Vivien Goldsmith,Maria Scott
Friday 01 January 1993 19:02 EST
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Kean Seager, managing director of Whitechurch Securities, says: 'I think we will come out of recession, albeit modestly. But on inflation, interest rates and equity performance things could go either way. I think it will be the year of the search for income.

'I do quite like the equities market but I think it will be a rough ride. I like to steer a middle way. There are with-profits bonds that offer a half-way house between the capital security of a building society and the capital risk of the equity markets.

'I also like equity income unit trusts. The investment trusts in the field tend to be at par or at a premium, which makes them expensive.

'The yields from these funds give a net yield higher than a building society, and the prospect of a rising income and capital growth. I particularly like Aetna Smaller Companies Dividend Trust fund with a yield of 8.47 per cent (6.3 per cent net) and the similar GT Smaller Companies Dividend fund.'

(Photograph omitted)

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