Japan mutual fund value falls 1.5 pct, but sees strong inflows

17-May-2012 Intellasia | Reuters | 7:01 AM Print This Post

The asset value of Japanese mutual funds posted the biggest monthly drop in five months in April hit by falls in share prices and rise of the yen, but the market saw strong inflows directed in global real estate funds and Asian equities funds. The overall asset value of Japanese mutual funds fell 928.1 billion yen, or 1.5 percent, to 61.27 trillion yen in April.

That was the second straight month of fall after slipping 92 billion yen or 0.1 percent the previous month. Falls in Japanese equities prices and the yen’s rise across the board weighed on the value.

Japan’s benchmark Nikkei average fell 5.6 percent and the broader Topix index dropped 5.9 percent.

The yen advanced about 1.2 percent versus the US dollar and rose 2.3 percent against the euro.

But inflows increased, with Japan-domiciled equity investment trust funds, a type of mutual funds known as toushin, recording their first net inflows since September, the Investment Trusts Association said. Net inflows of equity mutual funds totalled 428.9 billion yen ($5.37 billion) in April, a sharp reversal from net outflows of 14.8 billion yen a month earlier, the association said. “Appetite from investors has returned in April, especially after seeing healthy investment performances in February,” Fumio Inui, the association’s vice president, told a news conference. But he wasn’t sure how long it would hold because of the headwinds from Europe. “But I’m worried that such a trend is starting to fade due to the worsening of the situation in Greece and Spain and others in euro zone. I’m worried about how this problem would affect inflows in May,” Inui said. In February, Japanese mutual funds recorded their highest

ever monthly investment gains of 3.65 trillion yen. Market participants closely watch the Japanese mutual fundmarket because of its size, the eighth-largest in the world and bigger than the economy of Turkey.

Following is a breakdown of the April data: 

      Net money flows (in yen):    	 

                         April            March         	 

      Overall:         +405.1 billion        +52.5 billion 

      Stocks:          +428.9 billion        -14.8 billion 

      Bonds:            -23.8 billion        +67.3 billion 

      Value of publicly placed toushin (in yen): 

                         April            March      mth/mth 	 

      Overall:         61.27 trln       62.19 trln    -1.5 percent 

      Stocks:          50.32 trln       51.23 trln    -1.8 percent 

      Bonds:           10.94 trln       10.97 trln    -0.2 percent 	 

      Value of privately placed toushin (in yen): 	 

                         April           March      mth/mth 

      Overall:         29.45 trln       30.04 trln    -1.9 percent 

      Stocks:          28.87 trln       29.47 trln    -2.0 percent 

      Bonds:           584.2 billion        563.3 billion     +3.7 percent  	 

                         April            March      mth/mth    	 

      Value of ETFs:   3.10 trln         3.25 trln    -4.4 percent 	 

      Assets in foreign currencies (in yen):    	 

                         April            March      mth/mth 

      Overall:         24.28 trln       24.61 trln    -1.3 percent 

      Stock:            3.88 trln        3.94 trln    -1.5 percent 

      Bond:            13.48 trln       13.69 trln    -1.5 percent 

http://www.reuters.com/article/2012/05/15/japan-mutual-funds-idUSL4E8GF63F20120515

 


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