Guinness Flight Investment Funds has taken a novel step to combat arbitrageurs who have tried to use its Asian mutual funds to exploit market volatility in the past 15 months.

Beginning Feb. 15, four Asian-oriented Guinness Flight funds will move the daily closing time for purchase and sale orders from 4 p.m. to 9:30 a.m. eastern time. Purchase and sales orders received after 9:30 a.m. will be executed based on net asset values (NAV) set the following business day. Although fund companies have moved up order deadlines for operational reasons on occasion, the Guinness Flight move appears to be the first time a fund company has established such an across-the-board early order deadline to deter arbitrage.

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