Rothschild of New York and Acadian Asset Management of Boston have come out with two bold new mutual funds, given the economic upheaval in the Pacific Rim. Rothschild's new fund, the Asian Recovery Fund and Acadian Asset's fund, the Pegasus Asian Opportunities Fund are being introduced on the bet that the Asian economies will recover any day now.

Even though Japanese stocks are valued at less than half of what they were ten years ago and export-led growth in the region is beginning to look promising, most mutual fund companies still do not think now is a good time to step in with a recovery, or vulture' fund. Rather, most mutual funds are afraid deep structural problems in the Pacific Rim economies will delay recovery. And now that the central banks in Asia have reduced prime interest rates, there is the additional fear of deflation.

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