CONFIDENTIAL
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21.
The Fund's yield, calculated on the average of the opening and closing value of the Fund's financial assets (including gold and loans) was 6.85% in 1987, compared with 7.34% in 1986. This excluded profits and losses from switching activities and revaluation gains. Taking these into account the yield for 1987 would be 15.05% compared with 15.93% for 1986. The reduced yield was mainly due to slightly lower interest rates and a net unrealized
investment loss for 1987.
22.
Interest
Interest income for 1987 amounted to $6,718.2 million, an increase of 19.76% over that of 1986 of $5,609.6 million. income excludes gains on Treasury Bills that had not matured at the
year end.
The difference between the book value and the face value of Treasury Bills held at 31 December 1987 was $183.4 million (1986: $174.7 million). This is a measure of the profits which will be brought to account when these Bills mature in 1988.
23.
Dividends from equity investments amounted to $379.2 million in 1987. This includes $331.2 million (1986: $189.4 million) from Cable and Wireless (Hong Kong) Limited, $40.0 million (1986 $26.3 million) from The Cross Harbour Tunnel Company Limited, $5.7 million (1986: $4.0 million) from Hong Kong Air Cargo Terminals Limited and $2.3 million (1986: $2.3 million) from The
The return on cost for
Hong Kong Building and Loan Agency Limited. 1987 and 1986 were as follows :
1987
1986
%
%
Cable and Wireless (Hong Kong) Limited
43.36
24.79
The Cross Harbour Tunnel Company Limited
12.57
8.27*
Hong Kong Air Cargo Terminals Limited
30.28
21.35
The Hong Kong Building and Loan Agency Limited
15.86
15.86
* In 1986, a dividend declared but not yet paid by The Cross Harbour Tunnel Company Limited amounted to $9.5 million.
If this sum was
included, the return on cost for the year would have been increased
to 11.27%.
CONFIDENTIAL
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