Deputy Premier the Hon. Irving Pearman, alluding to Independence, said Monday at least one exempt company would continue to prosper despite possible changes in Bermuda.

Minister of Labour and Home Affairs Mr. Pearman, made the comment while speaking at a Fidelity International gathering to mark the company's long-time presence on the Island.

Fidelity International, whose president is Finance Minister the Hon. David Saul, commenced operations in 1969.

The company is a subsidiary of Boston-based mutual funds giant Fidelity Investments Ltd.

The Bermuda offices are headquarters for the company's international groups which operate in Europe and Asia.

The top executive of Fidelity Investments, Mr. Edward Johnson III, said yesterday time will tell if the Bermuda subsidiary would be affected by Independence.

Mr. Johnson is chairman and chief executive of FMR Corporation, parent company of Fidelity Investments, founded in 1946 by Mr. Johnson's father.

Stressing it was not his place to tell a jurisdiction how to run its affairs, he said: "As a general observation of international companies based in Bermuda, they are very comfortable with the current situation. If there is any change we will have to wait until after to know how it affects them.

"In the past 25 years Government has created a favourable climate for exempt companies -- historically one of the best -- it is very hard to imagine how that can be improved,'' said Mr. Johnson, Fidelity chairman since 1973.

"The financial business that grew here in the past, with a favourable business climate, will continue to do well,'' he said.

But he did note the Hong Kong situation has opened enormous opportunities for Bermuda.

The Bermuda Monetary Authority (BMA) estimated there are about 250 Hong Kong companies with about $70 billion in capitalisation now registered in Bermuda.

The BMA also said just under half of Hong Kong quoted companies are Bermuda registered.

Much of the growth has been in connection with Hong Kong's pending reversion to Chinese rule.

Mr. Johnson said Fidelity investors that have invested over the long term have done well.

The ownership structure of Fidelity International is similar to the US domestic operation.

The Johnson family has controlling interest in Fidelity International with the remaining share holdings owned by employees.

When Fidelity employees leave, their shares are reissued within the company.

In the US, 30-35 percent of the earning power of Fidelity is family owned, he said.

"We believe in giving ownership to the people who build the company,'' he said.

Mr. Johnson said Fidelity is a company run like a partnership.

Several Bermuda cedar antiques, located in the US and the UK by Mr. Johnson, have been returned to the Island through his efforts.

His ties to Bermuda date back 57 years to a childhood vacation.