The numbers are mouth-watering. During the first eight months of 2001, guaranteed fund products have been responsible for $236 million of $253 million net sales of mutual funds in Hong Kong. Fund managers in Taiwan want a piece of the action, but regulations stand in the way.
Now a taskforce of the Securities Investment Trust Companies Association Sitca, an industry group in Taipei, is preparing proposals for Taiwan's Securities and Futures Commission SFC to clear away the legal obstacles.
Guaranteed funds offered in Hong Kong typically invest the bulk of investments usually at least 85% in zero-coupon bonds and the remainder in options on the underlying stock market. Depending on the terms, investors get...
