Foreign firms find revenue streams responding to changes in Japan's financial sector | Print |


Members of the Japan Securities Dealers Association (JSDA) held a record 8 trillion yen in investment trusts denominated in foreign currencies at the beginning of 2006 and continue to increase their holdings each month.

Hedge Funds
The jump in hedge fund investments indicates that more investors are willing to explore higher-risk investment vehicles if it means higher returns.  According to a survey External Link conducted by Japan's Financial Services Agency, hedge fund sales in Japan grew nearly five fold over the five years from FY 2000 to FY 2004. 

Approximately half of those sales were to financial institutions, whose purchases also grew five fold.  But most remarkable has been the growth in hedge fund sales to individual investors, which grew ten fold over the same period.

Increase of Distribution Amount by Category of Investor

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Cick graph to enlarge
Source: "Summary of Hedge Fund Survey Results and the Discussion Points," December 2005, Financial Services Agency External Link