specialised bond fund, Fleming Leveraged Emerging Market Portfolio Ltd.

The $155.4 million Cayman Islands-incorporated fund will invest its assets in subordinated notes issued by its subsidiary Fleming CBO I (Cayman) Ltd.

The move to list in Bermuda is a positive endorsement of the reputation of the BSX and Bermuda, exchange chief operating officer Greg Wojciechowski said.

"We hope this will be one of many emerging market products to choose the BSX as their venue for listing.'' Director and CEO of Matheson Investment Management (Bermuda) Ltd. Ken Spurling said there is potential for mutual fund listings to be a big part of the BSX's future. BSX member Matheson Investment Management sponsored the listing.

The fund's portfolio will be predominantly debt securities or loans issued by sovereign borrowers and emerging market corporations.

About a third of the fund is invested in US high yield fixed interest instruments. Holdings are in Latin America, the Middle East, Africa, Asia, emerging Europe, the Caribbean and the US.

The fund's portfolio is managed by Fleming Investment Management, the London-based investment arm of the Flemings Group.

Flemings currently manages $92 billion of funds worldwide, of which $11 billion is invested in fixed interest securities and $12.7 billion in emerging markets.

Subscriptions are restricted to qualified investors and may not be traded in lots with an initial value of less than $100,000.

Fund director Harry Wilken said: "Through increase marketing efforts by the exchange, and more importantly by its member firms, there is no reason why an increasing number of funds and similar products from European and North American investment houses should not become listed on the BSX.'' There are currently over 60 mutual funds listed on the BSX.