HOW MANY REGISTERED CIS ARE ADVISED OR SUB-ADVISED OR MANAGED UNDER DELEGATION BY FOREIGN INVESTMENT ADVISERS?

Australia	France	Germany	Hong Kong	Italy	Japan	Luxembourg
n/a	36	n/a	n/a	n/a	n/a	n/a
Mexico	Netherlands	Spain	Sweden	Switzerland	United Kingdom	USA
2	50 (est)	11	n/a	n/a	90-100 (est)	109

COMMENTARY:

GERMANY: German CIS can only be managed by the issuing CIS-company. There are no "advisers" in the sense of "external management". The CIS can only enter into certain consulting agreements (eg for special markets). However, this does not apply to foreign authorised CIS which therefore may have advisers, sub-advisers or external managers (if allowed by their domestic legislation). Due to the fact that the CIS structures are not common in Germany, no corresponding statistical data on foreign authorised CIS is available.

HONG KONG: N/A; There are 187 foreign investment advisers that manage/advise authorised CIS as at 31.03.95. No data readily available on the number of funds involved.

ITALY: N/A; Most investment managers, authorised in Italy, use foreign advisers when they invest their assets in foreign markets.

LUXEMBOURG: N/A; The information on the number of Luxembourg CIS advised or managed abroad is not readily available. It is however, a fact that a large majority (presumably more than 10%) of Luxembourg CIS are advised or managed from outside of Luxembourg.

MEXICO: 2; Foreign operators/managers of CIS can render their services in Mexico only through the establishment of authorised affiliates. Currently, 2 foreign operators have been authorised, though none of them have started operations. Mexican Law does not contemplate delegation of functions by operators/managers.

SWITZERLAND: N/A; Delegation of management has only been permitted since 1 January 1995 since the introduction of a new law on mutual funds. Currently, no statistics are available on advisory or sub-advisory services performed by foreign entities, since the disclosure requirement was introduced on January 1, 1995.

UNITED KINGDOM: 90 - 100 (est). This is a difficult question to answer accurately as most UK CIS conduct their investment management activities within the UK. They may use information available from non-UK "advisers" but such arrangements may not necessarily be the subject of formal agreements, let alone providing for "delegation' as asked in the question. As at 1 August 1995 there were 1441 authorised CIS (in UK terminology "Securities Funds"). Within that total, it is estimated that no more than 90-100 are actually managed overseas, with regulatory responsibility to IMRO remaining in the UK.

USA: 109; The number of U.S. CIS that are advised by foreign registered investment advisers has grown steadily in recent years. Currently, 69 registered foreign advisers advise or sub-advise a total of 109 registered U.S. CIS. In 1988, there were approximately 14 CIS that had a registered foreign adviser as their primary investment adviser. By 1995, there were approximately 38 such CIS. This represents a 179% increase over a seven-year period. These 38 U.S. CIS were advised by 29 different foreign advisers. As of March 1995, there were also 71 other U.S. CIS which were sub-advised by a total of 57 foreign sub-advisers (15 of these sub-advisers also act as primary advisers to other CIS in the U.S.). In addition, there has been growth in the number of U.S. CIS advised by registered investment advisers owned by foreign parent companies. In 1988, there were 18 CIS advised by U.S. advisers with foreign parents. By 1995, there were 37 CIS advised by U.S. advisers with foreign parents. This represents a 106% increase over the seven-year period.