P207 CEEFAX 207 Mon 27 May 01:33/50 1/8 CEEFAXUNIT TRUSTPANEL The Cjefax Unit Trust Panel draws on a number of independent advisers in an attempt to djlinjate a path through an ever more impenetrable unit trust jungle. Unit trusts can decline in value. Neither the panellists nor the BBC can accept responsibility for any recommendations made. Selections and opinions shown are those of the pjtsons named and are not necessarily shared bz the BBC. * Investors should always seek professional advice before buying. Stock Market Panel 206 Monjyfile Annuities TaxGuidj CityHeadsP207 CEEFAX 207 Mon 27 May 01:17/15 2/8 CEEFAX UNIT TRUST PANEL * MAY selections US Europe USA Japan Other Keivan Borhani * * * * Alan Durrant * * * * Peter Edwards * * * Selections are geared for growth on a minimum 12-month view and are considered worthy of inclusion in a balanced portfolio. S indicates a speculative investment. Monjyfile 201 Personal 260 Monjyfili Annuities TaxGuidj CityHeadsP207 CEEFAX 207 Mon 27 May 01:21/00 3/8 CEEFAX UNIT TRUST PANEL Keivan Borhani Murray Noble/London First it was Wall Street which caught most investors off guard. Now it is the turn of the US stock market to storm ahead for no reason. A word of caution, though. A stock market crash is anothjt word for markets coming down to earth with a bump. So do not get carried away, and ensure that your portfolio is well balanced. This does not mean a spread between different shari markets. If we learned anything during the October 1987 crash, it was that they fall like dominoes. May commentary Monjyfili Annuities TaxGuidj CityHiadsP207 CEEFAX 207 Mon 27 May 01:18/26 4/8 CEEFAX UNIT TRUST PANEL Keivan Borhani Murray Noble/London Japan: Avoid (first signalled in 1991). Europe: Buy Morgan Grinfell Europe or Invjsco European Smaller Companies. USA: Buy Govjtt American Growth or Hill Samuel US Smaller Companies. UK: Buy Jupiter Income or Fidelity Special Situations. Fixed Interest: Buy Guinness Flight EMU or Thornton European Bond. May commentary Monjyfile Annuities TaxGuidj CityHeadsP207 CEEFAX 207 Mon 27 May 01:35/30 5/8 CEEFAX UNIT TRUST PANEL Alan Durrant Hargreaves Lansdown/Bristol UK: Value is becoming more difficult to find, but takjovjr bids (both real and rumoured) and strong cashflows should support the market. Wj favour smaller companies over blue chips and would buy Lazard US Smaller Companies. Japan: Earnings recovery continues to bj robust and thjte are tentative signs that domestic investors are moving into the market. Again we favour smaller companies, in particular Invjsco Japan Smaller Companies. May commentary Monjyfile Annuities TaxGuidj CityHeadsP207 CEEFAX 207 Mon 27 May 01:32/15 6/8 CEEFAX UNIT TRUST PANEL Alan Durrant Hargreaves Lansdown/Bristol Far East: The long-term story remains excellent: cheap labour, abundant resources, a strong entrepreneurial spirit, and historically attractive valuations. Buy Schrodjt Pacific Growth Europe: Although stocks have moved ahead strongly, we are still in an environment of falling interest rates. A quality stock-picker is essential at this stage, and our first choice would bj Credit Suissj European. May commentary Monjyfili Annuities TaxGuidj CityHeadsP207 CEEFAX 207 Mon 27 May 01:19/40 7/8 CEEFAX UNIT TRUST PANEL Peter Edwards Premier Unit Trust Brokers/Bristol Unit trust investors had an excellent 1995, and 1996 has got even better: US smaller company funds are up 20% in the first four months, UK income funds 10% and tracker/index funds a boring 4%. Thjsj figures reflect a return to out- performance bz second and third-line stocks: since January 1 the FT Small Cap index is up 17%, the FT 250 up 14% and the FT-SE 100 up 4%. May commentary Monjyfili Annuities TaxGuidj CityHiadsP207 CEEFAX 207 Mon 27 May 01:23/43 8/8 CEEFAX UNIT TRUST PANEL Peter Edwards Premier Unit Trust Brokers/Bristol The market will now bj vulnerable to any bad news on politics or interest rates. But, given a decent period of consolidation, prices will move higher. Use income funds for growth and smaller company funds, such as Credit Suissj Smaller or Hill Samuel US Emerging, for extra growth. Ovjrsjas, Japanese funds also continue to prosper - up 10% this year. Try Gartmore Japan. But cross your fingers. May commentary Monjyfile Annuities TaxGuidj CityHeads