INVESTORS are being offered three percentage points off the initial cost of three Asian funds being launched by East Asia Hamon, a new retail fund management group that is 50 per cent owned by the Bank of East Asia.
Another bonus for the investor is that an unlimited number of switches between the three funds can be made for free.
The company is launching an Asian Market Leaders Fund, a Japan Recovery Fund and an ASEAN Fund with management split between the company's managing director, Hugh Simon, and manager, Lawrence Lee.
The three funds will have a minimum investment of US$1,000 with an equivalent minimum top-up. The initial charge of 5 per cent - which has been reduced to 2 per cent during the offer period ending on January 26 - and annual charge of 1.5 per cent are in line with the industry average.
There also is a 1 per cent redemption fee for funds withdrawn within 12 months of investment. The base currency will be the US dollar.
The danger of investing in a new fund management group is the lack of any track record. Investors also should note that the funds can borrow and will invest in derivatives, which could add to their volatility.
East Asia Hamon has experience managing institutional funds for pension and insurance schemes.