RETAIL FUNDS | Cesar Tordesillas, Japan

ETFs help push up value of Japan mutual funds

The asset value of Japanese mutual funds rebounded in June.


This was helped by solid inflows into exchange traded funds, a fall in the yen and a recovery in global share prices, after dropping nearly $50 billion the previous month.

Japanese retail investors became net buyers of investment trust funds, a type of mutual fund known as toushin in Japan, for the fourth straight month, with net inflows totaling 263.8 billion yen or $3.33 billion in June, the Investment Trusts Association said.

Naoyuki Ichikura, section head of the association's system business office, said inflows into dividend-oriented Japanese equities funds especially stood out during the month.

"Strong gains in global share prices and the yen's falls lifted the value. Inflows into ETFs contributed to lift the overall value," Ichikura said.

The value of investment trust funds rose 1.04 trillion yen, or 1.8 percent to 58.36 trillion yen or $736.40 billion in June after falling more than 6 percent a month earlier, the Investment Trusts Association said.

The outstanding value of ETF jumped 15.1 percent or 468.6 billion yen to 3.57 trillion yen -- the highest since May 2008. These were helped by purchases from institutional investors mainly for hedge purpose and arbitrage trading during the month,along with purchases by the Bank of Japan, Ichikawa said.

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