For Immediate Release: Thursday 19 June 2000

COMPARISON OF BOND FUNDS MADE EASIER

The Association of Unit Trusts and Investment Funds (AUTIF) has announced that by 1 September 2000 a new standard method of calculating yields will be implemented by the industry.

Anne McMeehan, Director of Communications at AUTIF said:

"Currently a variety of methods are used, and whilst none of them is mathematically incorrect, the lack of a single standard means that in the past it has been extremely difficult for investors and their advisers to compare funds on a like for like basis."

AUTIF has been working with a number of representative companies over the years to establish an acceptable solution in this highly complex area of fund management. The Financial Services Authority (FSA) has indicated it is supportive of the industry’s initiative in introducing the revised calculation.

The funds that will be affected by the change include all those appearing in the UK Gilt, UK Corporate Bond, UK Other Bond and Global Bond sectors.

Anne McMeehan commented:

"The yield figure is often the first piece of information used by people looking to invest. It’s only right therefore that they are able to make more meaningful comparisons. The yield however, is just the starting point. Investors need to be in a position to understand better not only the nature of the yield they are likely to achieve over time, but also the potential risk/reward position of their capital. It makes sense to look beyond the simple headline number, whatever the financial product on offer."

For further information please contact:

Anne McMeehan, Director of Communications, AUTIF - +44 (0)20 7831 0898
Clare Arber, PR Manager, AUTIF - +44 (0)20 7831 0898

Notes to Editors:

All marketing and advertising material must use the new calculations by 1 September 2000. Fund information with a long ‘shelf-life’ must reflect the new requirements by 31 January 2001 at the latest.Yields will be calculated to a specific formula and revised at least once a month. The yield shown alongside prices in newspaper price pages and in advertising will be the gross redemption yield net of all charges and expenses.