The best and worst: European unit trusts

INTEREST rates were cut in France on Monday in an attempt to stall deepening recession. Switzerland also has its economic problems, but unlike France is not a member of the ERM, so it has more freedom to adjust interest rates.

These were high a year ago but have been reduced to boost the economy, explains Talal Shakerchi, manager of Providence Capitol's Swiss unit trust. This fed through to the stock market.

Mr Shakerchi also manages Providence Capitol's general European trust, and has taken Swiss shares to more than 12 per cent of the fund. It ranks ninth in Europe over a year, with a profit of nearly 16 per cent.

Aetna's Iberian trust has had its portfolio reorganised recently under a new manager, Tony Zucker.

'I know the fund is in the doldrums,' he says, but he is confident it will improve significantly by the end of the year.

----------------------------------------------------------------- EUROPEAN UNIT TRUSTS ----------------------------------------------------------------- The best pounds 1 Providence Capitol Swiss Equities . . . . . . 125.01 2 Mercury New Europe . . . . . . . . . . . . . .121.68 3 Morgan Grenfell European Growth . . . . . . . 119.89 4 Perpetual European Growth . . . . . . . . . . 118.58 5 St James Place Greater European . . . . . . . 118.40 The worst 125 Brown Shipley European . . . . . . . . . . . 98.22 126 Baring Europe . . . . . . . . . . . . . . . .97.67 127 Scottish Equitable European . . . . . . . . .95.68 128 Bell Court UK & European . . . . . . . . . . 89.34 129 Aetna Iberian Growth . . . . . . . . . . . . 80.73 ----------------------------------------------------------------- The chart shows the value of pounds 100 invested over one year to 1 June, 1993, offer-to-bid, income reinvested. ----------------------------------------------------------------- Source: Micropal -----------------------------------------------------------------