Investment trusts in Japan

Book-Entry Transfer System for
Investment Trusts in Japan
Japan Securities Depository
Center, Inc. (JASDEC)
May,2015
Copyright（Ｃ） Japan Securities Depository Center, inc. All rights reserved.
Contents
1.
Japanese market and Eligible securities
2.
System structure of investment trusts in Japan
3.
Process overview : new record via DVP associated with purchase
4.
Our current priorities
Copyright（Ｃ） Japan Securities Depository Center, inc. All rights reserved.
1
1. Japanese market and Eligible securities
Proportion by nation
Investment trusts in Japan
Luxemburg
12%
the Cayman
Islands
46%
4%
42%
others
96%
Domestic
Foreign
Proportion by product type
Total:\160 Trillion
7%
5%
(as of the end of 2014)
Book-Entry Transfer System
for Stocks
ETF
corporation-type
(REIT etc)
88%
Book-Entry Transfer System
for Investment Trusts
other contract-type
(stock/bond fund etc)
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2. System structure of investment trusts in Japan
Network system operated by the private vendors
Purchase
Purchase/ /Redemption
Redemption
Information
Information
NAV Information
Dividend Information
Beneficiary
Fund Distributor
(JASDEC Participant or
Indirect Participant)
Approval of New Record
Transfer Instruction
JASDEC
◆Management of Transfer
Account Book
◆Management of Fund Information
Fund Registration
New Record
Redemption
◆Sales Management
Issuer
◆Fund Management
◆Calculation of NAV
◆Management of Fund
Distributors
(Balance, Dividend, …etc)
◆Management of Beneficiaries
(Balance, Individual Principal,...etc)
Request for fund
transfer
Notice of Completion of
Recording Trust Property
Investment Instructions
NAV Matching
Trustee
Settlement Bank
Bank of Japan (BOJ)
◆Administration and Safekeeping
of Trust Properties
Inter-bank network
: Indicate transactions in JASDEC’s Book-Entry Transfer System for Investment Trusts.
: Indicate transactions in systems outside JASDEC.
Copyright（Ｃ） Japan Securities Depository Center, inc. All rights reserved.
3
3. Process overview
（Example of new record via DVP associated with purchase)
Network system operated by the private vendors
2.Purchase Information
Beneficiary
1.Purchase
Fund Distributor
(JASDEC Participant or
Indirect Participant)
4.Notice of "No.3"
5.Approval of
new record
7. Notice of “No.6"
Issuer
JASDEC
3.New record
6.Issue account record
11. New record
10. Notice of “No.8"
7. Notice of “No.6"
7.Request for fund
transfer
Trustee
Settlement Bank
8.Payment request
Bank of Japan (BOJ)
10. Notice of “No.8"
9. Fund transfer
: Indicate transactions in JASDEC’s Book-Entry Transfer System for Investment Trusts.
: Indicate transactions in systems outside JASDEC.
Copyright（Ｃ） Japan Securities Depository Center, inc. All rights reserved.
4
4. Our current priorities
JASDEC’s capabilities have been expanded
(Stock, CB, CP, Bond, Investment Trust, ETF, DVP, Pre-Settlement Matching, ISO20022…)
-> Several sub systems (over 20) may cover overlapped functions across products
Complicated platform create difficulty in upgrading, could trigger system disruptions…
PFMI
BCP/DR
More reliable
More flexible
More efficient
Regulatory/taxation change
Cost reduction
1. Integration of sub systems ( investment trusts + ETF )
2. Elimination of unused functions
New products
New functions
New services
5
To contact us
Japan Securities Depository Center, Inc. (JASDEC)
Fixed Income and Investment Trust Department
URL
http://www.jasdec.com/system/fund/
E-mail
[email protected]
Copyright（Ｃ） Japan Securities Depository Center, inc. All rights reserved.
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