TNAG-2475-FCO40-3605-Hong-Kong-exchange-fund-report-and-accounts-for-1991-1992 — Page 28

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44.

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 1991 with that laid down in paragraph 4 of the

investment policy can be found at Appendix IV.

45.

Paragraph 5 of the

investment policy stipulates that

between 40-60% of the

the Fund's

Fund's foreign currency assets should be

placed under outside management (excluding central banks). As at 31

December 1991, such placements fell short of the lower limit of the

policy guideline and amounted to 28.76% compared with 24.25% at 31

December 1990. A total of US$1,510.0 million was injected into

existing and newly established managed portfolios in 1991, an

increase to the ratio of 4.51% from the level at the end of December

1990.

46.

A country risk statement is at Appendix V. It can be

seen that relatively high proportions of the Fund were lent to

institutions in Japan (12.22%), France (9.36%) and the U.K. (8.49%) in comparison to the proportions of assets actually denominated in

Japanese yen (4.76%), French francs (3.67%) and sterling (3.05%).

On the other hand, although only 31.24% of the Fund was lent to

organizations incorporated in the U.S.A., 69.83% of the

assets were denominated in US dollars.

Fund's

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