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32.
A maturity spread statement of the Fund's assets,
including Hong Kong dollar assets, can be found at Appendix III. A table comparing the actual maturity spread of the Fund's assets at 31 December 1987 with that laid down in paragraph 4 of the investment policy can be found at Appendix IV.
33.
Paragraph 5 of the investment policy stipulates that between 30-50% of the Fund's foreign currency assets available for investment in obligations maturing in not less than six months should be placed under outside management (excluding central banks). As at 31 December 1987, such placements amounted to 47.94% compared with 49.19% at 31 December 1986 and 50.78% at 30 June 1987.
34.
A country risk statement is at Appendix V. It can be seen that a high proportion of the Fund was lent to U.K. institutions (17.72%) in comparison to the proportion of assets actually denominated in sterling (8.67%). On the other hand, although only 23.59% of the Fund was lent to organizations incorporated in the U.S.A. 54.03% of the Fund's assets were denominated in U.S. dollars.
35.
A summary of foreign currency bonds and notes, separating domestic, euro-currency and foreign obligations is at Appendix VI. The proportion of the Fund's assets held in such obligations for each of the last three years was:-
1985
1986
1987
Foreign currency bonds
and notes
47.38
48.00
44.60
Other obligations
52.62
52.00
55.40
100.00
100.00
100.00
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CONFIDENTIAL