Funds Launches Innovative Private Fund for Dollar Investments with Yen Payouts

Introduction to the New Fund by Funds

Funds, Inc., which operates a fixed yield investment asset management service, has introduced a pioneering private fund designed to accommodate investors contributing in US dollars. This fund will make loans to domestic listed companies also in US dollars, yet distribute returns in yen to its investors. Such a fund structure has not been previously announced in Japan, marking a significant innovation in financial offerings.

Addressing Market Challenges

In recent times, investors have experienced limited options for foreign currency investments, largely due to the high costs associated with foreign exchange hedging. On the flip side, Japanese companies, actively pursuing global operations, have seen their demand for dollar-denominated financing surge. The newly established fund aims to directly connect the dollar assets of investors with the financing needs of Japanese companies. By doing so, companies can mitigate exchange rate risks through yen-based interest payments, allowing them to allocate more resources towards growth in overseas ventures. Investors benefit from steady dividends in yen while maintaining their principal in dollars, thus enjoying the advantages of both currencies.

Overview of the Fund’s Structure

- Flow of Funds: Investors (dollar contributions) → Private Fund (managed by a subsidiary loan firm) → Domestic Listed Companies (dollar loans)
- Interest Payment and Dividends: Interest payments from borrowing companies will be received in yen, calculated based on a fixed exchange rate as of five business days prior to the loan issue date, and subsequently distributed to investors in yen.
- Principal Repayment: This will occur in US dollars (returned dollars can be reinvested).
- Investment Duration: Approximately 24 months.

The fund will facilitate matching between large investors capable of dollar investments and companies in need of dollar financing, solidifying itself as a private fund arrangement. Going forward, Funds Inc. plans to collaborate with multiple domestic listed companies to expand this scheme and explore the formation of diverse foreign currency-based funds.

Investor Insights

Investors have lauded this innovative scheme for skillfully blending the advantages of both foreign and domestic currencies. They perceive it as a potential next-generation model within the private fund market, expressing gratitude for the opportunity to engage in such a groundbreaking investment venture.

About Funds

Funds offers an online platform allowing individuals to make loans to publicly listed companies starting from just one yen. As of April 2025, they have successfully facilitated the formation of 521 funds involving 105 listed companies, with zero instances of distribution delays or defaults.

Key Features of Fixed Yield Investment with Funds

- Stable Returns: The funds provide a stable asset-building opportunity without fluctuations in value, minimizing the psychological burden and management efforts typically associated with investments.
- Microscopic Investment Amounts: Individual investors can participate with as little as one yen, breaking down barriers for newcomers to investing.
- Rigorous Selection Process: Companies participating in the Funds platform have successfully passed stringent financial and business evaluations set by the firm.
- Exclusive Benefits: Some funds offer investors additional perks such as discount coupons or invitations to exclusive tasting events, reinforcing the engagement between individual investors and businesses.

Funds aims to cultivate a new avenue for deeper mutual understanding between investors and businesses through financial connections, thereby creating new value in the economy.

Background of CEO Yuichiro Fujita

Yuichiro Fujita, the CEO of Funds Inc., graduated from Waseda University’s School of Commerce. He began his career at CyberAgent Inc. and later founded a web development and marketing support company in 2007, which he sold off in 2012 after making it public. In 2013, he launched a popular lending crowdfunding service, establishing Funds Inc. in November 2016.

Regulatory Information

Funds does not impose fees for account opening, management, or investment. However, investors may incur transfer fees charged by their respective banks when sending investment capital. Additionally, funds offered by Funds are not guaranteed against principal loss, and investors should carefully review all terms and risk profiles associated with each fund.