For immediate release 24 April 1998

AUTIF BULLETIN OUTLINES INDUSTRY'S PLANS FOR OEICS

The Association of Unit Trusts and Investment Funds today issued a bulletin listing the companies that have either launched open ended investment companies, or announced their intention to introduce them in due course.

Philip Warland, Director General of AUTIF stated:

"Although the industry appears to have been slow to introduce OEICs, some significant players are already in the ring. With new entrants arriving regularly, activity is likely to speed up. Recent research suggests that many management companies have been reluctant to commit themselves to the conversion of their existing unit trust ranges because of the continuing uncertainly surrounding the eligibility of cash funds and fund of funds. However, the same piece of research also reveals that over 60% of respondents intended to launch one or more funds by June 1999.

In the light of the arrival of Individual Savings Accounts next year, with their cash and securities components, it would make sense for the Government to address the issue of extending the investment powers of OEICs".

For further comment please contact:

Anne McMeehan, Director of Communications, AUTIF, 0171 831 0898
Philip Warland, Director General, AUTIF, 0171 831 0898
Sheila Nicoll, Director of Legal & Fiscal, AUTIF, 0171 831 0898

Notes to Editors

OEICs launched

• Global Asset Management: first off the blocks in May 1997, with an umbrella oeic starting with a single Japanese sub-fund, to which other sub-funds are being added at intervals.
• Threadneedle: began a major reorganisation starting in August 1997 of former Eagle Star and Allied Dunbar unit trusts into a 23 fund umbrella.
• Fidelity: launched an umbrella fund for institutional investors in August 1997.
• Rothschild Asset Management: began converting its range of UK and Guernsey based unit trusts into a new UK OEIC in September 1997
• Save & Prosper: began with an umbrella OEIC with a single East European sub-fund in October 1997
• Murray Johnston: converted two unit trusts to OEICs in February 1998
• Templeton: are converting 3 unit trusts in April 1998.

OEICs planned For The Future

• Foreign & Colonial: have announced a possible launch for Spring 1998.
• Baring: hope to launch an OEIC umbrella fund in the second quarter of 1998.
• Standard Life: propose to launch at end September 1998 an umbrella OEIC consisting of 7 new sub-funds and 8 funds converted from unit trusts.
• Gartmore: have proposed a major restructuring, timing first half of 1999. Edinburgh Fund Managers: propose to convert probably 21 funds, probably 1999.
• Fidelity: has announced its intention to convert 20 unit trusts to OEICs (subject to unitholder approval).
• Liverpool Victoria: are considering launching an OEIC although no timetable has been announced.

For further information on the management companies OEICs plans please contact:

Nick Wells, Baring 0171 628 6000
Nigel Whittingham, Edinburgh 0131 313 1000
Martin Harrison, GAM 0171 917 2213
Dawn Houghton, Threadneedle 0171 390 9154
Jo Roddan, Fidelity 01732 777 261
Philip Childs,Foreign & Colonial 0171 628 8000
Vee Montebello, Gartmore 0171 782 2447
Theresa Radwell, Liverpool Victoria 0171 621 9100
James Murray, Rothschild 0171 623 1000
Alex Billson, Save & Prosper 0171 417 2200
Heather Scott, Standard Life 0131 245 0179
Richard Elliott Lockhart, Murray Johnstone 0141 226 3131
Susan McDonald, Templeton 0131 469 4000