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A new trend in Japan's asset management business toward a shift from saving to investment

September 2, 2016
Kae Kunishima*,Junnosuke Shino*,Kei Imakubo
Financial Systems and Bank Examination Department

  • Currently at the Financial Markets Department

Japan's asset management business has reached a turning point. Looking at the investment trust market, the market share had been dominated by monthly dividend-paying funds, in which regular income could be expected. But recently, in response to diversification in households' asset-building needs, various types of products that meet households' preference for total return have been developed and the amount invested in those products is growing. Of these products, so-called engagement funds are gaining attention as one of the financial products that meet the medium- to long-term asset-building needs of households. The funds are a type of active management funds, aimed at improving corporate value through repeated dialogue with invested firms from a medium- to long-term perspective. Those active management funds are expected to contribute to strengthening equity governance, which has been comparatively weak.

Notice

Bank of Japan Review is published by the Bank of Japan to explain recent economic and financial topics for a wide range of readers. This report, 2016-E-10, is a translation of the original Japanese version, 2016-J-16, published in September 2016. The views expressed in the Review are those of the authors and do not necessarily represent those of the Bank of Japan.

If you have comments or questions, please contact Securities Business Group, Financial Institutions Division III, Financial System and Bank Examination Department (E-mail: kei.imakubo@boj.or.jp).