Net inflows into Japanese mutual funds dropped by about 26% in 2007, according to the Nikkei Report.
"Since the new year, we have seen a number of redemptions, primarily among stock mutual funds as investors sought to lock in profits," said an official at a major asset manager.
Japans stock mutual fund environment deteriorated last year due to a global slump spurred by the subprime mortgage crisis in the U.S. Overall investment returns in Japans mutual funds fell to -10% on average.
Instead of stock mutual funds, many investors turned to foreign bond mutual funds, which had a smaller price fluctuation risk.
The top five biggest mutual fund sellers were Daiwa Asset Management Co., Kokusai Asset Management Co., Mitsubishi UFJ Asset Management Co., Nikko Asset Management Co., and Nomura Asset Management Co.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.