Impact of Changes in Best-Selling Investment Trusts on Sales Commission: Asset Class-Based Analysis

5 Pages Posted: 22 Nov 2012

See all articles by Takahiro Hattori

Takahiro Hattori

Nomura Institute of Capital Markets Research

Date Written: November 22, 2012

Abstract

We need to analyze sales commission on the basis of asset class if we are to properly understand how it has changed. This is because we need to take into account the way funds are managed and the amount of explanation customers require (i.e., the degree of difficulty and the amount of time expended). If we compare the sales commission on different asset classes in FY03 and FY11, we can see that the sales commission on passively managed funds has generally either declined or trended sideways. The same is also largely true of actively managed funds, with the sales commission on actively managed Japanese equity, overseas equity, and overseas hybrid funds either lower or at the same level in FY11 as in FY03. In contrast, the sales commission on actively managed Japanese bond, overseas bond, and Japanese hybrid funds appears at first sight to have risen. In fact, however, this is largely a result of changes in best-selling investment trusts.

Keywords: Japan, commission, fee, asset class, investment trust

JEL Classification: G11

Suggested Citation

Hattori, Takahiro, Impact of Changes in Best-Selling Investment Trusts on Sales Commission: Asset Class-Based Analysis (November 22, 2012). Nomura Journal of Capital Markets, Vol. 4, No. 1, 2012, Available at SSRN: https://ssrn.com/abstract=2179355

Takahiro Hattori (Contact Author)

Nomura Institute of Capital Markets Research ( email )

Urbannet Otemachi Building
2-2-2, Otemachi, Chiyoda-ku
Tokyo, 100-8130
Japan

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