European Stars and Stripes (Newspaper) - January 22, 1990, Darmstadt, Hesse                                World of investments by Randy pro itt staff writer while Gleeful germans danced atop the Berlin Wall Many foreign investors were doing their own celebrating. They were cheering for inc West German Mark. Smart a slanders have parked their dollars yen and other currencies in Germany and other hot countries with robust economies. Many do it with single country funds publicly traded portfolios invested in the stocks Ozone nation. In Europe there arc the German fund France fund. Spain fund. United kingdom fund. Helvetia Swiss fund. Austria fund and Portugal fund. Elsewhere the offerings specialize in the stocks of Japan the Philippines Thailand Chile Mexico and South Korea. The list continues to grow. Single country funds allow the investor to buy the particular fund which then purchases various stocks in that country. The investor capitalizes on the professional management of portfolio experts who keep close tabs on stocks. Like a Mutual fund financial risk is minimized through diversification. Single country funds arc not new but they be become quite a rage  said Tom Mclntyre vice president of pcs sauce asset management in Orleans. Mass. His Boss. John pcs sauce. Publishes pcs sauce s journal an International investing newsletter. Last March. Dessauer touted the european funds in Money Magazine but added a caveat the window of Opportunity is not going to remain open too much  his forecast proved Correct. The game is different  Mclyn Lyric said. Funds which could have been purchased at a discount last year now arc commanding top prices he said. The German fund was Selling at a 15 to 20 percent discount a year ago. Now. It s going at a 50 to 60 percent Premium. You May like the German Story and you May like what you see Down the Road but from an entry investment Point of View it is always Bulow. Sell  he said. The Germany fund is not attractive at this  e. Swanson a financial planner in acid Cloberg. West Germany who caters to clients in the . Military Market agrees. That fund has gotten very pricey because of the emotional reaction to what has happened in East  Swanson said. If could have anticipated what was going to happen with the Berlin Wall. I would have put a Heck of a lot of Money into it Sii months ago. Right now it s much uni Copen  Mclyn Lyric said another example of an Over priced investment vehicle is the Spain fund. In Premium has shot up 90 percent he said. He blames the increase on japanese investors who keep pushing the value of country funds higher. Mclntyre recommends prospective buyers of a single country fund first consider the Economy underlying the fund. Finally the buyer should study the incl value of inc fund whether it is Selling at a discount or Premium. Mclntyre favors the Helvetia fund which is trading at a 10 to 13 percent Premium and inc United kingdom fund now Selling Al an 8 percent discount. We think Switzerland is a country whose Slock Market has not run its High like inc German  he said. Mclntyre believes the Swiss cd Moony will Benefit greatly by the european Market plans for 1992 and by the inc Simont opportunities in inc East  warned thai when buying a single country fund you Are making a judgment that this country and these stocks that comprise it Are uniquely set up to  Caid Wise investors buy funds at a discount when no one cares Aboul  need patience because in May Lake a year or two for Ihm to develop he said. Mclntyre said Many Good Stock buys arc right under the noses of . Investors. We now think there s More value in Downtrodden . Stocks which suffered and did t recover from the ocl. 13 fiasco he said. Britain s great rates generate pounds of interest Bidav Odiehl . Bureau London investing in securities in great Brilain where interest Rales arc relatively High is simple for americans based overseas.  Civijian employees  dependents of both qualify for exemptions fro United kingdom taxes. Single people arc exempt from taxes on dividend or i Mersl income up to about $4.735. Married couples get an exemption of Aboul $7.438. Beyond those limits the lax Rale is 25 percent for inc next 20.000 pounds income. Ihen climbs to 40 percent Banks and building societies the . Equivalent to savings and Loans currently arc advertising Rales ranging from 11 to 12 percent per year. The government s department of National savings offers a variety of investments. They Range from savings certificates earning about 7.5 percent per year to income Bonds and capital Bonds thai arc currently earning about 12 percent according to Robert Hambelton a spokesman for the department. The incr Cal is guaranteed often for up to five years. The certificates and Bonds arc government backed the equiv Alanl of . Savings Bonds. In Many cases the inter Cal or premiums arc paid Wilhour taxes Wilhelm. Every Posl office in Brilain and some Banks handle inc Bonds and accounts. A spokesman for the . Inland Revenue service said that . Citizens arc nol liable for any . Lax on capital gains from the Sale of . Securities. . Investors also can get Back 10 percent of inc 25 Pyrc Cal . Lax Laken out of Slock dividend income before it is paid. However United states tax is due on All such income no matter How it is treated by a foreign government said Bob Tobin of the . Internal Revenue service office in London. Reporting investment income earned on British accounts Bonds and investment is inc responsibility of the Saver Tobin said. The irs has no agreements with Banks or the British government Hal would allow it to find Oul Aboul earnings of . Citizens. 1869 Galna to nov. 1 Mutual fund distributors there Are scores of firms caned Mutual fund distributors that Market Mutual funds d Etty to investors. When contacting a distributor rebut the prospectus the annual or semiannual report and other data. Mot have Exchange  which Means you can switch assets from on fund to another within the distributor 8 portfolio the following is a list of major distributors an offer Exchange privileges Alliance fund services 500 Plaza drives Abacus. N j 07094 201 319-4000offers 24 funds. Including Stock balanced foreign Bond and preferred municipal Bond and Money Market funds Dean Amer Reynolds one world Trade Center Nev York by 10046 212 392-2500offers 21 funds including Stock balanced foreign Bond and preferred municipal Bond and Money Market funds Dreyfus service corp.600 Madison ave. New York. By 1002297180 6951106 otters 41 funds including Stock balanced foreign Bond and preferred municipal Bond and Money Market funds. Fidelity distributors corp. 62 Devonshire . A 02109 offers 91 funds. Including Stock balanced Loreign. Bond and preferred municipal Bond and Money Market funds. Franklin distributors 777 Mariner s Island blvd san Mateo. Ca 94404-1565 offers 30 funds. Including Stock balanced foreign Bond and preferred municipal Bond and Money Market funds. Of global financial services so California  2700 san Francisco. Ca 94111-4624 4150 392-6161offers 6 funds. Aft m foreign investments ids financial services ids Tower 10 Minneapolis. In ss440 612 372-37r 612 372-3733 otters 25 funds. Including Stock balanced Loreign. Bond and preferred municipal Bond and Money Market funds. Merrill Lynch funds distributor Pobo 9011princeton. No 06543-9011 1609 262-2600offers 31 funds. Including Stock balanced Loreign. Bond and preferred municipal Bond and Money Market funds. T. Rom Price associates 100 East Pratt is. Baltimore. My 21202 301 547-2306offers 25 funds. Including Stock foreign Bond and preferred municipal Bond and Money Market funds. Prudential Bache one seaport Plaza Mutual funds-16th floor new York. By 10292offers 35 funds. Including Stock balanced foreign Bond and preferred municipal Bond and Money Market funds Putnam financial services one Post office Square 12th Floo Boston. A 02109 617 292-1000offers. 34 funds including Stock Loreign. Bond and preferred. Municipal Bond and Money Market funds Scudder fund distributors 160 Federal . A 02110 offers 25 funds including Stock foreign Bond and preferred. Municipal Bond and Money Market funds. Shearson Lehman Hull none Western Union Plaza 15ci floor new York. By 10004 212 528-2744offers 40 funds. Including Stock balanced foreign Bond and preferred municipal Bond and Money Market funds. Templeton funds distributors 700 Central  Petersburg. Al 33701-3626 613 923-6712offers 5 funds including Stock balanced and Loreign funds Vanguard group of investment cos. ?obo2600 is 136valley forge. A 19462 215 646-6000offers 47 funds. Including Stock balanced foreign Bond and preferred municipal Bond and Money Market funds. Playing the tax game this special Section is the product of several stars and stripes departments. Trie two month project was edited by projects editor George Manes and copy editor John Bayne. Art director Peter Jaeger designed the Section and artist Susan Harris created the charts and graphics. Reporters Randy Mcclaln and Randy Pruitt wrote most of the stories with contributions also from Ron Jensen Elfie Bathen and Dave Lehl. The bulk of the technical Page composition was performed by Brian Smith. 1 8 is financial planning guide january 22,1990