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DON'T EXPECT FUND FEES TO BE RATIONAL (int'l edition)

In a world where free-market practices are so highly valued, the question you ask in ''Why fund fees are so high'' (Finance, Nov. 30) is trivial. Consumers simply don't buy what they judge to be unreasonably priced. And the same rule applies to fund investment.

Whether the independent directors are truly independent is another matter. But if a fund company decides not to share the benefits of economies of scale with investors, it is nothing more than a business decision. There is nothing wrong with keeping the same rate of fees and making more money from larger fund assets. Perhaps those investors should have exercised their right to choose, not their right to sue.

Stanley Ngan
Hong Kong


Updated Dec. 10, 1998 by bwwebmaster
Copyright 1998, Bloomberg L.P.
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