#Japan #Tokyo #Asset Management #government bonds #Active ETF

Japan's Financial Landscape Transforms with New ETFs

Asset Management One, based in Chiyoda, Tokyo, has recently made waves in the investment world by launching Japan's first series of active ETFs focused specifically on government bonds, known as the "One ETF" series. This innovative approach aims to enhance the investment opportunities available to individuals and institutions, amidst a changing economic climate.

The Five Newly Introduced ETFs

The series includes five different ETFs, each targeting government bonds with varying maturities:
- One ETF Japanese Government Bonds High Coupon (Average Maturity: Less Than 10 Years) - Code 492A
- One ETF Japanese Government Bonds 1-3 Year - Code 493A
- One ETF Japanese Government Bonds 3-7 Year - Code 494A
- One ETF Japanese Government Bonds 7-10 Year - Code 495A
- One ETF Japanese Government Bonds 17-20 Year - Code 496A

These ETFs are slated to be listed on the Tokyo Stock Exchange on January 20, 2026.

Economic Backdrop for the Launch

This launch comes at a pivotal time in Japan's financial history, particularly as the Bank of Japan's negative interest rate policy is set to conclude in March 2024, leading to an expected gradual rise in interest rates. As investors begin to shift their focus towards government bonds as viable investments, the introduction of these ETFs offers an exciting new avenue for capital growth.

However, it is important to note that, by the end of November 2025, there were only three ETFs on the Tokyo Stock Exchange primarily focused on Japanese government bonds. Thus, Asset Management One's offering not only fills a significant gap but represents a pioneering movement in ETF offerings within Japan.

Active Management Meets Simplicity

Asset Management One has strategically designed these ETFs to incorporate a simple rule-based management strategy, ensuring that, despite being actively managed, they remain accessible and comprehensible for a wide range of investors. The company intends for these products to serve various investor needs, recognizing that the Japanese government bond market is becoming increasingly attractive.

Risks and Costs Involved

While these investment trusts offer potential opportunities for growth, it's crucial for investors to understand the associated risks and costs:

• - Investment Risks: The value of bonds and other securities may fluctuate due to market conditions, which could lead to a decline in the fund's net asset value. Investors should be aware that their initial capital is not guaranteed and that they may incur losses.
• - Investment Costs: Investors should be prepared for costs including purchase fees (up to 3.85% incl. tax) and management fees (annual rate of up to 2.463% incl. tax). These costs can significantly affect the overall returns, so it is essential to consider them when investing.

Understanding these factors is crucial for potential investors. Asset Management One encourages individuals to read the trust explanatory documents carefully to make informed investment decisions.

About Asset Management One

Founded in October 2016, Asset Management One is a leading asset management company in Japan, boasting approximately 76 trillion yen in managed assets across both discretionary investment and investment trust services. Committed to the principle of "nurturing the future through the power of investment," Asset Management One leverages extensive global research capabilities to provide exceptional solutions tailored to both individual and institutional investor needs.

For more information about Asset Management One and their investment offerings, you can visit their official website at Asset Management One.