Funds of funds and alternative investment funds are
helping to drive growth in the Isle of Man's collective funds industry, which has
seen an increase in the number of funds of over 45 per cent in the year to 30
June 2002.

New research from Fitzrovia International shows that the island's funds industry
has been able to withstand the sustained difficulties in equity markets. This is
partly due to the impressive growth of more specialised asset class types such as
funds of funds and alternative investment funds on the Island.

The number of funds of funds has increased by nearly 80 per cent, rising from 28
to 50 funds, while alternative investment funds have more than trebled from 9 to
29 funds, as at 30 June 2002.

Another key element of the growth in the funds industry has been Experienced
Investor Schemes, launched in October 1999, and now making up 47 per cent of
all funds notified to the Financial Supervision Commission, the largest proportion
of all scheme types.  There are 112 such schemes on the Island, up from 48
twelve months ago.

Among the leading service providers on the Isle of Man, Fortis Fund Services is
the largest fund administrator with US$1,485.9 million of fund assets under
administration.

Royal Bank of Scotland International (RBSI) has the largest market share of
assets under custody with US$2,477.2 million.  Bank of Bermuda is ranked
second for both services, with US$1,078.5 million and US$2,441.4 million for
fund administration and custody services respectively. 

KPMG maintains its lead as the largest auditor of funds serviced on the Island
(79 funds), just ahead of PricewaterhouseCoopers (77 funds), with Deloitte &
Touche third (36 funds).

Cains retains its position as the legal adviser for the largest number of Isle of
Man funds (190 funds) - a 69 per cent market share.

David McGarry, Managing Director of KPMG Audit LLC, said: "The Experienced
Investor Fund category has achieved major growth, following itsintroduction three
years ago, and is now the scheme of choice for all new funds projects.  Demand
from promoters and intermediaries continues to be strong, with an increasing
variety of funds being formed."

The Isle of Man Fund Encyclopedia is available from London-based Fitzrovia
International plc, and is priced at £1,549.