By: Sun Zhao Yang
Compiler: http://www.fundcn.org

Asia’s glory — in Japan Fund (1)

In the world of mutual fund managers eyes, Japan is the largest potential of a region. As the world’s second largest economic entity, Japan’s national income savings rate was 20%. The American savings rate income less than 4%. 2000, mutual funds in Japan, the penetration is extremely low — the Fund’s assets is about 500 billion U.S. dollars. Personal financial assets accounted for the less than 4%, while the United States accounted for the personal assets of the Fund’s financial assets ratio of 23%. If Japan’s mutual fund industry in the absorption properties like the United States to be successful, Then Japan will be one of the fund industry giants.

Japan Securities Investment Fund was established forms of division, not in open and closed. but with the additional units-type distinction. Units – similar to the advantages of closed-end funds But because allowing investors to redeem their investment without fully comparable to a closed-end funds and the additional open – is quite consistent.

In 1951, Japan adopted the “Securities Investment Trust Law,” and to start the fund industry. The bill than the prospective establishment of investment trusts, its structure and the United Kingdom is very similar to unit trusts, Prior to the establishment of investment trusts must sign a contract and the Trust prior to set a deadline. Next, the 49 years Bill has often been adjusted.

Japan in the 20th century, before the 1990s, although the year-to-year fluctuations, but the units are for the most part Fund, especially in the early 1950s and late 1980s, several decades, unit type accounted for the majority decision. In 1952 and 1990, nearly 40 years, the flat-fund net assets increased by 508 times. an average annual increase of 13.56%, the additional funds – although the growth rate is quite fast, but the total was less than 26% only.

Asia’s glory — Fund in Japan (2)

And the late 1990s, the situation has changed radically Fund units share has declined each year, in 1994 only to 36.04%, the additional rapid-growth, to the 1994 total net assets over the past two flat-fold. This is because Japan’s stock market in the 1950s to the 1980s, most of the time, Without the United States as a fierce shock relatively stable. Investment Fund commissioned a one-time after the establishment of the Fund will not have a strong impulse to the replenishment, Investors generally not large terminated. In the 1980s, interest rates in international markets and into the main content of financial liberalization to promote the rapid expansion of Japan’s stock market, Fund managers in order to avoid the additional funds-as the bureaucratic procedures, if you want to increase the volume of funds, mainly through the creation of more new units to achieve the Fund, So the end of the 1980s-fund unit share rose to 90%. After entering the 1990s, Japan’s bubble economy began to burst, the stock market plummeted, and the degree of increased mobility, financial institutions in bad debts and scandals increasingly prominent people in the financial intermediary’s confidence dropped significantly, Therefore investment more cautious, and the performance of the investment fund will be more inclined to additional type, at any time redeem the purchase. Meanwhile, fund managers operating level has greatly improved, electronic technology and the increasing network that spans the breadth, at any time Price, calculation, Initial redemption of the family-type fund management requirements of the technical problems of this type not become an obstacle to fund expansion, So Supplementary Fund rapid expansion, and finally over the flats Fund.

Japan’s investment trust could be placed in two categories : the same time the stock and bond holders of stock investment trusts, only holders of bonds and other fixed income securities of the bond investment trusts. In early 1999, 70% of the trust assets held by the Trust Notes, But investors in the fixed income securities preferences degree than even this ratio is higher. At that time, all the Japanese investment trust holdings of securities, only 13% of the stock — even stock investment trust holdings of fixed income securities over 50% This reflects Japanese investors of the extreme conservative.

Asia’s glory — Fund in Japan (3)

Japan’s stock market in 1999 experienced a 10-year-long performance is the worst signs of recovery, equity investments, as a mutual fund investment momentum on the people who over the attractiveness of the 1980s after the collapse of the bubble of the Fund at any time. Japanese government to the public by providing tax incentives for retirement savings scheme, its similar to the United States to jointly fund industry have a tremendous impact on the 401 (K) plan. In 2000 and 2001, more than one trillion U.S. dollars, a 10-year postal savings certificates of deposit due At that time savings deposit rate less than 1% of cases, Japanese investors are also faced with these funds in investment demand. In the face of tremendous market potential for Japanese investments, have to understand that Japanese investors have tried to understand the risks and things that are familiar with aspects of traditional reluctance, This makes the Japanese mutual fund industry penetration in order to achieve the level of the United States needs 5 — 20 years.

At present, Japan is the world’s open-end fund investment industry’s largest in the world. In Japan an open-end fund development process, although only experienced 10 years of development, but success, quite the enormous potential. With business operations manager, the further improvement and electronic technology to further improve, its open-end fund will be an entirely new prospects for development.

Copyright Fund China 2009.

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