There has been much talk in Europe and the US in recent months of the growth of exchange traded funds, and it is no different in Asia. By mid-year, ETF assets under management in Asia had reached $55bn (£35bn, €37bn), according to Bloomberg. Perhaps more impressive is the fact that these ETFs, estimated to number over 250 (223 equity-based), have attracted more than $11bn during the financial crisis – representing about 20 per cent of their asset base over the previous 18 months.

Several explanations have been suggested for this strong demand. One is the low cost of ETFs compared with actively managed mutual funds, although Asian mutual fund investors have typically not been price sensitive in an environment of high returns and high volatility.