Is Asia Ready for Funds?
From Wall Street Journal
While mutual funds have swept the field in the United States, they have yet to catch on in Asia. The paper reports that only 8 percent of Hong Kongers, 10 percent of Japanese and 14 percent in Singapore. The article posits that the high savings rates in these countries may mean that the use of funds in these countries may be about to bloom. One thing holding back the industry is high fees: loads averahe roughly 5 percent and annual fees 150 basis points. Compare that with the U.S., where nearly a third of funds have no sales commission, and yearly management and promotion fees are about 1.3 percent.