CONFIDENTIAL

19

47.

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:-

1989

1990

1991

Foreign currency bonds

and notes

42.25

44.21

53.30

Other obligations

57.75

55.79

46.70

100.00

100.00

100.00

48.

Paragraph 6(1) of the investment policy provides that the

Fund may be employed in equities, subject to a maximum equivalent to

10% of the note and coin issue liabilities of the Fund and to the

approval of the Secretary of State. As at 31 December 1991, equity

investments amounted to 0.04% of these liabilities (31 December 1990

: 0.82%). The basis upon which equity investments are valued is set

out in paragraph 1(d) of the Notes on the Accounts on page 31.

CONFIDENTIAL

Share This Page