Capital market and mutual funds

I refer to your article in Sept. 14 edition titled Mutual fund industry hit hard by huge redemptions.

In this article you quoted Noor Hassim of BNI Securities as saying that these (redemptions) would not have happened had investors really understood how the capital market worked.

As a former long-time fund manager, I am outraged about this statement. Is it not the duty of the fund manager to properly explain the workings of the capital market and mutual funds to clients before they invest?

If I am not totally mistaken, it was BNI Securities who offered its investors an opportunity to exit and re-enter its mutual funds free of charge once a week. In doing so -- and not explaining the longer-term nature of mutual funds -- it falsely created the impression to investors that this investment class could be used for short-term speculation on the direction of the markets.

May I suggest that the mostly overpaid and privileged fund managers start putting the welfare of others ahead of their personal interests.

ROLAND HAAS, Jakarta