Gold Mutual Funds Launch
2025-07-17 01:30:42
State Street Investment Management Launches Two Gold Mutual Funds in Japan
State Street Investment Management Unveils New Gold Mutual Funds in Japan
On July 17, 2025, in Tokyo, State Street Corporation (NYSE: STT), headquartered in Boston, announced the launch of two public mutual funds focused on gold investment in Japan through its asset management division, State Street Investment Management. These funds are expected to begin operations on August 14, 2025, with the goal of improving local investors' access to gold.
The newly introduced mutual funds, named "State Street Gold Open (Hedged)" and "State Street Gold Open (Unhedged)," aim to track the movements of the gold spot price (LBMA Gold Price PM in Japanese yen). The underlying investment for these public funds will be physical gold stored securely in vaults located in London, New York, and Zurich, supported by SPDR® Gold MiniShares® (GLDM). The management fee for these mutual funds is projected to be approximately 0.2925% annually (around 0.2750% excluding tax).
Akira Inada, Executive Officer, Head of Financial Institutions Sales at State Street Investment Management, stated, "We are thrilled to collaborate with the World Gold Council to expand gold investment solutions for Japanese investors who wish to diversify their portfolios. Investors can choose between a hedged option that mitigates currency risk during a weakening dollar or an unhedged option that allows them to benefit from rising gold prices along with a weak yen and a strong dollar. Additionally, those interested can still invest in gold through ETFs already listed in Japan. This new launch reflects our ongoing commitment to providing Japanese investors with more choices."
The introduction of these two gold mutual funds marks a significant step in the long history of innovation in gold investment. In 2004, State Street Investment Management partnered with the World Gold Council to launch SPDR® Gold Shares (GLD®) in the U.S., which has become the largest and most traded gold ETF, later listed on the Tokyo Stock Exchange (TSE code: 1326) in 2008. Furthermore, in 2018, they launched SPDR® Gold MiniShares® (GLDM), which offered a lower expense ratio.
The GLDM ETF qualifies under the new NISA system, and plans are in place to register the new gold mutual funds under the growth investment framework of NISA.
Aaron Chang, Gold Strategist at State Street Investment Management, shared insights on the Japanese investment landscape, noting, "With the expansion of the NISA system, new individual investors are now considering a wider range of financial products beyond traditional investments. This trend underscores the importance of offering diverse offerings to investors, especially as many look to alternative assets like gold to diversify their portfolios amidst increasing market volatility."
Gold has established itself as one of the best-performing assets, consistently hitting record highs in the first half of 2025, becoming a favored choice for many investors.
Xiaokai Fan, head of the Asia-Pacific region (excluding China) for the World Gold Council and global head for central banks, commented, "Strong demand from central banks and rising interest in gold among Asian investors are driving gold prices higher. We believe there is still room for prices to rise further. Strategic factors such as uncertainties in trade policies, ETF inflows, recession risks, and potential rate cuts by the Federal Reserve are all supporting the gold market alongside structural factors like rising demand from central banks and the trend of de-dollarization."
The mutual funds will initially be available exclusively through Rakuten Securities, marking them as the lowest-cost gold mutual funds offered by Rakuten at present.
State Street Investment Management currently provides a wide range of gold-related products globally, managing approximately $120 billion in assets related to gold as of June 13, 2025.
About State Street Investment Management
State Street Investment Management has been dedicated to delivering better outcomes for institutional investors, financial professionals, and individuals for nearly five decades. Starting with innovations in index management and ETFs, our rigorous approach is supported by proven expertise and a steadfast commitment to our clients. Currently, we manage over $5 trillion in assets, providing comprehensive and cost-effective investment solutions tailored to help investors achieve their goals in collaboration with clients in over 60 countries.
About the World Gold Council
The World Gold Council is a membership organization advocating for the strategic role of gold in investment. Our team of experts works to enhance understanding through credible research, analysis, and insights while promoting industry progress and sustainable practices. Follow us on social media platforms for more updates.