TNAG-1773-FCO40-2525-Hong-Kong-Exchange-Fund-Hong-Kong-Futures-Exchange-Limited--1988 — Page 124

CONFIDENTIAL

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14. ADMINISTRATION EXPENSES

The components of this item of expenditure were:

1987 HK$'000s

1986 HK$'000s

Portfolio management fees

and bank charges

10,593

8,041

Multi-currency portfolio

bonuses

919

689

Staff costs reimbursed to the Treasury

6,973

6,737

Telex, cable charges, Telerate and Reuter's monitor service

Entertainment and overseas

duty visits

Computer

Consultancy fee

Miscellaneous

656

369

4

7

117

114

403

9

6

19,674

15,963

Compared with 1986 there was an increase of 23.3% under this head of expenditure. Portfolio management fees and bank charges increased by $2,552,000 from $8,041,000 to $10,593,000 mainly due to an increase of $6.9 billion in the amount under management and the use of higher base exchange rates for accounting purposes for all foreign currencies except the U.S. dollar. Multi-currency portfolio bonuses to those managers whose return exceeded the average return of the group amounted to $919,000. The consultancy fee was in connection with the merger of Cable and Wireless (Hong Kong) Limited and Hong Kong Telephone Company Limited.

CONFIDENTIAL