Due to (or, considering the results, thanks to, though I hate to say thanks to) COVID-19, many business events have been going online so we can participate any seminars (or webinars) all over the world (as far as you can manage your sleeping hours), to learn and catch up with recent regulations changes at any jurisdictions, regardless of onshore or offshore, as well as promotions of brand new investment vehicles and real cases such as VCC – Variable Capital Company – in Singapore and OFC – Open-ended Fund Company – in Hong Kong, by ear: what a wonderful world for learn!
Among others, Omori-sensei, who is a partner of Withers Japan and game me his brand-new book for Japan domestic limited partnership and Koji, another famous partner counsel of Withers Japan and my long-time friend organised their webinar in late July to present to overseas (hence all in English, unlike Japanese lawhouse) how you conduct fund business into Japan from both placement and portfolio management aspect. Figuring out the average audience which their contents targeted, who have neighbour successful peers with Japanese investors so thought that we can go better, I could not stop give some laugh and smiles and scratching my heads when Koji and Omori-sensei honestly commented to current business environment in Japan, which I suspect it discourages (oops, I have to stop it).
One of take-out from their webinar here was:
“If you want to sell your fund in Japan, you need unit trust form, as…”
In principal, I do agree with his explanation then: At that time, I also made some researches to local taxation rule as well as backdrop for product design to a certain country, so those made me agreed as his explanation has same root with my research. In addition, I have some more words to explain, as I have a business track record to raise and manage USD 4 billion of AUM from Japan market and I also had experiences with various obstacles which his explanation did not mention but I have to share from non-legal aspect.
And, as you may know, a month ago (since I wrote Japanese edition of this article) Nick Harrold, a (good-looking with pleasant personality) partner at Maples Hong Kong, who I also knew him for more than 10 years, uploaded his webinar why Japan loves Unit Trust so I am getting to a point that now is another time to explain JID – Japan is Different.
So, this article, my virgin blog in English, is to present my edition of “Why Japan loves mutual funds / unit trust” from another aspects than legal professionals, as both product structuring and business customs aspect, to respond to legal analysis by those webinars. This article has Japanese edition of article as well as my presentation desk uploaded to slideshare in August 2020. I hope this assists you when you start working with Japanese investors.