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SCMP Reporter

FEE income at Jardine Fleming Unit Trusts rocketed in the past financial year to more than US$109 million.

  A combination of raised management charges, huge subscriptions and net asset growth sent the money paid by ordinary investors to Hong Kong's biggest fund management firm soaring, figures in JF's Unit Trust Annual Financial Reports show.

  Asia-Pacific Funds alone pulled in US$102.82 million in management fees, including both front-end and management charges.

 One fund, The JF India Trust pulled 2,439 per cent more fees with the total management fees rising to $4.6 million for the year ended September 30, 1994. Fees from front-end loading were $9.07 million.

  This year the firm disclosed additional information to fund holders. A detailed breakdown of business done between JF's fund management and broking arms was included for the first time.

  Also revealed for the first time was what fund managers were paid from the front-end charge on new subscriptions, often much higher than management fees.

 The firm did better than most of its punters over the period. While management fees were up by 214 per cent year-on-year, average unit net-asset values (NAV) climbed only 47.3 per cent.

  Because front-end fees were only disclosed for the first time in this year's financial reports, a year-on-year comparison of total fees is impossible. JF Unit Trusts chief executive Tim McCarthy said that fund managers profits trailed those of investors.

  The financial year for most JF funds runs from September to September, although some funds were reporting for 14 months.

  The last quarter of 1993 saw huge capital flows into and out of funds and huge growth in Net Asset Values.

   But 1994 was a disastrous year for markets, especially near the end.

  'Our profitability for the last three months has been way down,' Mr McCarthy said. He said net redemptions had meant the pool of money on which fees were charged had shrunk while falling Net Asset Values had also hit at fees.



JF Unit Trust fees exceed US$109m