P226 CEJFAX 226 Mon 27 Oct 21:14/15 1/8 UNIT TRUST PANEL The MONEYFILE Unit Trust Panel has been recruited from a number of independent advisory firms in an attempt to offer a path through the unit trust jungle. Unit trusts, it must bj emphasisjd, can fall in value. Neither the panellists nor the BBC can accept responsibility for recommendations made. Selections shown and opinions expressed are those of the persons named and are not necessarily shared bz the BBC. * Investors are recommended always to seek professional advice before buying. MoreP226 CEEFA( 226 Mon 27 Oct 21:18/28 2/8 UNIT TRUST PANEL * OCTOBER's panellists have chosen: UK USA Japan Gilts Other Hargreaves * * * * Hazes * * * Laurence * * * S = speculative * Selections are geared for growth on a 12-month view and are considered worthy of inclusion in a balanced portfolio. MoreP226 CEEFAX 226 Mon 27 Oct 21:18/27 3/8 UNIT TRUST PANEL Peter Hargreaves (Hargreaves Lansdown) * OCTOBER commentary: Interest Rates - Up or Down? At the moment, this particular question is having most effect on world equity markets. Everyone agrees interest rates in the world are too high. But currency vblues are still jealously guarded. We believe the Americans, Japanese, Dutch, and Germans will be first. But the rest of us will follow. You must consider international fixed interest, especially German and Japanese govjrnmjnt bond funds. MoreP226 CEJFAX 226 Mon 27 Oct 21:12/21 4/8 UNIT TRUST PANEL Peter Hargreaves (Hargreaves Lansdown) * OCTOBER commentary (continued): Europe, the darling of the last two years, still represents value and is probably the safest place at present. The lionhearted could try America, since this market will probably move when everyone is fed up with waiting. Now Japan has had its shakeout, invest in this market. The Nikkei Dow Jones is good for 20,000. The UK, riddled with political uncertainty and poor trade figures, will be volatile. Still plenty of value, however, in small companies and special situations. MoreP226 CJEFAX 226 Mon 27 Oct 21:12/49 5/8 UoIT TRUST PANEL Peter Hayes (Plan Invest) * OCTOBER commentary: UK Gilts Despite weak sterling and the risk of a rise in interest rates, gilt funds look right for the long term and for those who need income. Several to choose from, such as M&G Gilt and Fidelity Gilt & Fixed Interest. UK Equities No hurry. But across the month, on weakness, buy selectively into well-managed funds such as Holborn Special Situations and M&G Recovery. MoreP226 CEEFAX 226 Mon 27 Oct 21:23/07 6/8 UNIT TRUST PANEL Peter Hayes (Plan Invest) * OCTOBER commentary (continued): USA America is too sensitive to news and economic indicators to assess. Leave it to the computers to sort out. Other Markets Leave Japan alone for the time being. But European funds indicate good prospects for growth. Try Baring European and Target European Special Situations. MoreP226 CEEFAX 226 Mon 27 Oct 21:13/28 7/8 UNIT TRUST PANEL Keith Laurence (WestAvon Financial) * OCTOBER commentary: Overview Conditions still exist for the world economies to continue growing, although at a slower rate than before. There is still scope for capital gains. UK The equity market looks nervous "ut should end the year somewhat higher when sterling is stronger. USA: Wall Street and the dollar may conj cheaper but will be worth buying for the long term. MoreP226 CJEFA( 226 Mon 27 Oct 21:17/20 8/8 J UNIT TRUST PANEL Keith Laurence (WjutAvon Financial) * OCTOBER commentary (continued): Japan The yen still looks strong, "ut equities look rather expensive. Gilts Could remain unsettled in the short term, but are now moving into a buying range for the medium term. Honk Kong Looks set for a continued rise. Europe Interest rates should fall again eventually, and European markets are generally attractive. More