Reforming the Fee structure of Investment Trusts to Increase Demand
Yoshino, Naoyuki; Aoyama, Naoko | February 2017
Abstract
Since 1998, sales channels for investment trusts have expanded in Japan. We expected this to result in greater demand for investment trusts but these expectations have yet to be met. The underlying causes of investment trusts’ slow growth may be due to negative net returns to individual investors during the economic downturn—i.e., after deducting costs from dividends.
When the Japanese economy is sluggish, asset management companies should invest in high-growth Asia, among other regions, rather than the domestic market. And when domestic financial markets are strong, the companies should invest more in Japanese markets. Investment trusts are the vehicle for seizing world economic trends. However, the performance of Japan’s investment trusts has not been as good as that of the United States (US).
To further enhance demand for investment trusts, their fee structure must be changed so that asset management companies, distributors, and individual investors seek the same goals. In other words, the interest of distributors and asset management companies would need to be better aligned.
Citation
Yoshino, Naoyuki; Aoyama, Naoko. 2017. Reforming the Fee structure of Investment Trusts to Increase Demand. © Asian Development Bank Institute. http://hdl.handle.net/11540/8666.Keywords
Economic Development
Economic Infrastructure
Economic Policies
Regional Economic Development
Microfinance Programs
Public Finance
Local Financing
Financial Stability
Financial Sector Regulation
Public Financial Management
Financial System
Financial Statistics
Foreign and Domestic Financing
Financial Inclusion
Enterprises
Financial aid
Economies in transition
Local Finance
Local Government
Insurance Companies
Banks
Social Equity
Pension Funds
Mutual Funds
Financial Aspects
Fiscal Policy
Social responsibility of business
Accounting
Personal budgets
Cost and standard of living
Bank accounts
Credit control
Regulatory reform
Banks and banking
Digital Financial Service
Pension plans
Individual retirement accounts
Employee pension trusts
Investment management
Investments
Multiemployer pension plans
Keogh plans
Individual retirement accounts
Pension plans
Employee pension trusts
Pension trusts
Investment companies
International banks and banking
Stock exchanges
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