Have any foreign asset managers launched successful products in Japan? In this snapshot series, we profile three toshin fund successes. The third and last one is "JPM Best Income".
This article is based on reporting in Ma-Do magazine, a Soken publication in Japan.
3. JPM Best Income Monthly Fund / Annual Fund
The market for toshin funds (similar to mutual funds in the U.S.) is in transition. Investor goals are beginning to change, driven by factors such as limited tax breaks for investors who buy and hold for several years. The typical individual toshin buyer — once a reliably short-term investor, frequently changing funds to maximize income — now is more likely a mid- or long-term investor seeking asset allocation.
The JPM Best Income Fund, a multi-asset fund introduced by J.P. Morgan Asset Management in September 2014, has been most successful in taking advantage of this market shift. The portfolio of this actively managed fund consists of mainly global bonds, stocks, and REITs with currency hedges. Unlike other toshins, the Best Income fund is designed as a mid- and long- term investment vehicle, in which investors are advised to reinvest dividends and increase their holdings. Investors can choose between monthly or annual dividend payments.