For Immediate Release: Wednesday 12 September 2001

INVESTMENT FUNDS - INDUSTRY UPDATE
SUSPENSION OF DEALING

Following events in the US yesterday, AUTIF has spoken to a number of its member firms and trustees/depositaries regarding their approach to pricing and dealing today.

Firms appear to be adopting one of two policies.  Investors and their advisers are recommended to contact investment companies direct to find out their specific approach.

1.      Markets that are closed

A number of firms have decided to suspend dealing only where a fund has a material exposure to markets that are not currently open.  These include those in the Far East and on the American continent.  Firms in this category seem to be applying a 5% or 10% threshold to determine what constitutes material exposure.

2.      Suspension of all funds

Other companies have decided to suspend dealing across all funds due either to market volatility or suspicions that the integrity of prices available from those markets that are open may be compromised.

In either case, firms are particularly concerned that cancellations of units/shares may be made at a valuation that bears little relation to the prices at which they will subsequently be able to sell the assets, to the potential detriment of continuing investors.

Clearly, all investors, whether they are buying, selling or retaining their holdings, must be treated as fairly (and without favour) as the current exceptional circumstances permit.

AUTIF has recommended that its members make such information freely available to all enquirers, whether investors, advisers or, for that matter, any other interested parties.

Ends

Anne McMeehan, Director of Communications, AUTIF, 020 7831 0898
Clare Arber, PR Manager, AUTIF, 020 7831 0898