#Japan #Tokyo #Asset Management One #Japanese Government Bonds #Japan ETFs

Introduction

On January 20, 2026, a significant development unfolded in Japan's financial markets with the launch of five actively managed ETFs focusing on Japanese government bonds. This initiative, spearheaded by Asset Management One, marks the first of its kind in Japan, showcasing a commitment to meet diverse investor needs amidst evolving market conditions.

Background

Asset Management One, headquartered in the Chiyoda district of Tokyo, was established in October 2016 and has since amassed approximately 76 trillion yen in assets under management as of September 2025. This places the company among the top asset management firms in Japan. The firm operates in both investment advisory and mutual fund sectors, striving to deliver high-quality solutions designed to adapt to the demands of personal and institutional investors alike.

Details of the ETFs

The five ETFs listed on the Tokyo Stock Exchange are aimed at different maturities of Japanese government bonds:
1. One ETF Japanese Government Bond High Coupon (Code: 492A) - Focuses on bonds with an average maturity of less than ten years and high coupon rates.
2. One ETF Japanese Government Bond 1-3 Years (Code: 493A) - Invests in bonds with maturities of one to three years.
3. One ETF Japanese Government Bond 3-7 Years (Code: 494A) - Targets bonds with maturities between three to seven years.
4. One ETF Japanese Government Bond 7-10 Years (Code: 495A) - Concentrates on bonds with maturities of seven to ten years.
5. One ETF Japanese Government Bond 17-20 Years (Code: 496A) - Invests in longer-term government bonds with maturities of 17 to 20 years.

These ETFs are expected to cater to a wide range of investor preferences, responding to growing interest in Japanese government bonds amid changing investment climates.

Investment Environment

Japanese government bonds have gained attraction among investors seeking stable returns in a low-interest-rate environment. The introduction of these actively managed ETFs offers increased flexibility and access for investors who want to participate in the bond market without directly managing their portfolios. Each ETF aims to provide competitive returns through active management, utilizing Asset Management One's expertise and market insights.

Risks and Costs

Investors considering these ETFs should be aware of the associated risks and costs. While these investment vehicles offer opportunities for returns, the value of the investments can fluctuate due to changes in the market environment, particularly concerning the credit status of the issuers. Potential investors can face losses, including risks of capital depreciation.

The costs associated with investing in these ETFs include:

• - Purchase Fee: Up to 3.85%, including tax.
• - Redemption Fees: Variable, depending on the value of redemptions.
• - Trust Property Retention Fee: Up to 0.5%.
• - Management Fees: An annual rate of up to 2.463%, including tax.

It is crucial for investors to read the investment documentation provided prior to any investment decisions to thoroughly understand all associated risks and fees.

Conclusion

The launch of the actively managed Japanese government bond ETFs by Asset Management One represents a forward-thinking move in Japan's financial landscape. With a dedication to nurturing future investments through comprehensive asset management strategies, the firm aims to meet diverse investment needs while providing innovative solutions. This development is anticipated to contribute to a more dynamic and accessible investment environment for individuals and institutions alike in Japan. For more detailed information, interested investors are encouraged to visit Asset Management One's official website at Asset Management One.

Overall, this initiative may reshape investment behaviors and perceptions regarding government bonds, paving the way for a more robust investment culture in Japan.