Interest in asset building has increased due to changes in lifestyles such as remote work during the corona crisis. Especially among young people in their 20s and 30s, the number of Tsumitate NISA accounts has increased rapidly.Under such circumstances, it can be said that Tsumitate NISA is the definitive edition“Select the latest Tsumitate NISA from these 9 books”(Written by Haruhiro Nakano, Diamond Publishing) will be released on March 16. In this series,For those who want to use Tsumitate NISA for long-term investment and asset building, we will publish excerpts from the book on how to choose and buy a Tsumitate NISA wisely without fail.Even those who are new to investing and wondering “What is Tsumitate NISA?” We will explain the basics in an easy-to-understand manner, so please feel free to contact us.
Investment management costs are a “benefit” for investment trust management companies.
Next, I would like to explain regarding “operating management cost”.
Until a while ago, operation and management costs“Trust fee”It was called this is,Remuneration that can be received by three companies: the investment trust management company that manages the investment trust, the trustee bank that manages the investment trust assets, and the selling financial institution(Of this, the portion received by the sales financial institution is called the “agency fee” mentioned above).
Investment management costs are truly a “benefit” for investment trust management companies. Although the levels differ greatly between index management and active management,The annual rate is regarding 0.1 to 3%So, it will be deducted from the trust property of the investment trust every day.
Trust assets refer to assets such as stocks and bonds that are included in investment trusts that you own.
For example, let’s say your operating expenses rate is 1% per year. The “net asset balance” shows the current amount of the trust assets. Operation and management expenses will be distributed to affiliated companies involved in the operation and management of the fund.
There is no relationship between high operation management costs and good performance
The management fee rate varies from mutual fund to mutual fund. Now, some of you may be wondering if the higher the cost, the better the results.
I think it’s natural to think, “I’m paying a higher cost, so I should be able to receive better service.”
But that doesn’t apply to mutual funds at all.
The best service as an investment trust is stillProviding investors with solid investment performanceI think.
However, there is no correlation that a fund with a high management expense ratio can consistently achieve high performance.
This is because investment trusts are invested in markets such as the stock market and the bond market.There is absolutely no such thing as a fund manager who can know in advance what the market will be like in the future.. Because no one can predict the future.
Paying high fees to hire world-famous and extremely talented managers or introducing a very expensive investment system does not guarantee high investment performance.
No matter how talented a fund manager is, no one can consistently maintain top-class investment performance.Thing.
Investment trusts with high investment management cost ratios are not always superior
In the past, a hedge fund with an operation system built mainly by Nobel Prize winners in economics went bankrupt due to the impact of the currency crisis. I think you can imagine that even with such a track record, it is not always possible to win.
If there is a guarantee that you will definitely win if you invest a large amount of money into an excellent manager and an excellent operation system, even if there is an investment trust with a high operation and management fee rate to bear the cost, that is not the case. Acceptable.
But the reality is that no matter how much you pay for something like that, you won’t necessarily get excellent results. in short,Investment trusts with high investment management cost ratios are not always superiorIt is.
However, the question then arises: What does high O&M costs mean? I will explain this next time.
Chairman and CEO of Saison Asset Management
Vice Chairman, The Investment Trusts Association, Japan; Director, The Saison Foundation
Graduated from Meiji University School of Commerce in 1987 and joined Credit Saison. In 2006, he founded Saison Asset Management. Current position since June 2020. Propose long-term investment to steadily increase assets. He has managed two internationally distributed investment trusts for over 15 years and supports the long-term asset formation of individuals. He has won the “R&I Fund Award” Grand Prize for objective quantitative evaluation for 9 years in a row. The number of accounts opened by 160,000 people exceeded 500 billion yen in assets under custody.
in major publications“Select the latest investment trust from these 9”“Buy an investment trust like this”(above, Diamond Co.) and many others.
