in recent months, according to official figures.

Collective investment schemes include mutual funds and unit trusts.

The latest tally to the end of November showed an increase of the total number of collective investment schemes to 568 from 550, but a significant decline in the total net asset value (NAV) to $12 billion from about $14 billion.

The number of funds registered in Bermuda in 1994 was double the number registered in the previous year.

Bermuda Monetary Authority manager of investment services division, Mr. Peter Sousa, said that more emphasis was placed on the importance of the total number of funds, as opposed to the NAV, which he said fluctuates all the time.

But the more than 14-percent drop was revealed during a press conference yesterday by a group of twenty professionals who are about to jet off to Palm Desert, California to attend the exclusive CCH/FBA mutual funds conference.

The conference is hosted by CCH Inc., formerly known as Commerce Clearing House (CCH), and the Federal Bar Association (FBA).

Delegation chairman, Mr. Paul Lemmon, Bank of Butterfield officer (business development), said the visit will afford Bermudians with an opportunity to "undertake some strategic marketing to a highly-targeted audience.'' Analysts point to market trends and a number of other items in any explanation of the drop of the total net asset value of the funds in Bermuda.

Mr. David Bolden, managing director of Emerald Financial, commented that it probably was indicative of the general trends in the marketplace.

Mr. Bolden said, "It would be consistent with what has happened on an international basis. There has been a bit of a movement of capital out of some mutual funds into fixed income deposits as interest rates have gone up.

"I saw some information from First Boston the other day in which they were tracking US mutual fund in-flows and they are down somewhere between 10 and 20 percent.

"Even with mutual fund houses in Canada that I've been talking to the trend is similar. Six months from now, you'll probably see a net in-flow.

"There were probably more net redemptions than net purchases of mutual funds in the last quarter of last year in Canada and that was still occurring during the first quarter, although it's clear that it is now being reversed.'' Meanwhile, Mr. Andrew Doble of Ardent Investment Management Ltd., agreed that 1994 markets were drifting down, and particularly evident was a trend downward in the emerging markets.

And Mr. James Davis, fund treasury analyst at Fidelity International Ltd.

conceded that the market sentiment during the year was not particularly high.

"A lot of people had been watching the way interest rates were going for the US Government. Treasury bonds, Treasury notes and the way the markets had been performing.

"Most of the markets did do a dip, and that was the beginning of the Mexican problem way back in November, with a little bit of the problem with their currency.

"I remember Hong Kong was having a bad time in that respect and lost something like 18 percent in one week off the Hang Seng Index. People were worrying about the property market there, while the US was still tinkering with the interest rates.

"The value of some investments were dropping.'' Mr. Davis also agreed with other analysts who said that some people last year, especially with their eyes on the interest rate movement, would move some assets into shorter term products, where they could still get returns of around seven percent.

Meanwhile, those flying to Palm Desert next week, who yesterday met with journalists at the Bank of Butterfield board room, said they intend to attract new prospects.

One way they will drum up new business is by hosting a Bermuda Breakfast Briefing, featuring remarks from well-respected financial analyst, Mr. Michael Lipper CFA.

The annual mutual funds conference is so popular that it is limited to 1,500 delegates and the Bermuda contingent has limited its Breakfast Briefing to about 200 special guests.

One of that number will win a draw at the breakfast that provides them with a free opportunity to visit Bermuda.

Mr. Lemmon said, "This briefing represents the first time that an offshore jurisdiction has hosted an event at the CCH/FBA conference, which is one of the major mutual funds conferences on the calendar.

"We believe this conference is the right environment in which to provide an update on opportunities available in Bermuda that will be of significant interest to the other delegates attending the conference.'' The first Bermudian to attend the CCH/FBA conference 12 years ago was Mid Ocean Trust Company Ltd. president, Mr. Tom Davis, who convinced other industry representatives of its marketing potential. He will be the host of the Bermuda Breakfast Briefing.

He said yesterday, "We're pleased that we have been able to secure Michael Lipper as our keynote speaker. He is widely recognised as an objective and astute commentator on the mutual funds industry. He will be addressing current trends in the context of the globalisation of the funds industry.

"There is real potential for growth in Bermuda's mutual fund industry. But we have to be aggressive in letting the world know about our products and services. We have timely information regarding developments such as the Code of Conduct, and this is the audience that should have this information.

"American Airlines and Princess Hotels International have joined us as industry partners in sponsoring the Bermuda Breakfast and we are very grateful for their support.'' The Bermuda Breakfast Briefing will be held Tuesday morning at Marriott's plush Desert Springs Resort & Spa.

Mr. Lipper is the CEO of a number of firms which have the following functions: publishing, broker/dealer member of the New York Stock Exchange, investment advisory and management consulting.

He has waived his normal engagement fee for his address at the Bermuda Breakfast.