A new way of getting into Softbank:
-- Quoting news from the Nikkei website --
Tuesday, January 18, 2000
Merrill Lynch To Launch Fund With 16 Promising Japan Stocks
TOKYO (Nikkei)--Merrill Lynch Japan Inc. has begun to market a closed-end investment trust grouping of the 16 Japanese shares it believes hold the most promise for this year.
The fund, which will be equally divided among the 16 issues, will be established on Jan. 28. Merrill Lynch says it is the first defined asset fund in Japan.
The fund features stocks of information- and communications-linked companies such as Nippon Telegraph and Telephone Corp. (9432), Kyocera Corp. (6971) and Softbank Corp. (9984), as well as other firms, including Kirin Brewery Co. (2503), Mitsubishi Estate Co. (8802) and Yamanouchi Pharmaceutical Co. (4503).
The fund will be priced at 10,000 yen per share, and the minimum order is 10 shares. The fund will mature in one year. The portfolio will not be adjusted, eliminating the need for a dedicated fund manager. Therefore, costs like commissions should be 2-3%, one to two percentage points lower than existing funds.
Merrill Lynch plans to launch a similar fund next year, and
investors will be able to roll over their positions without
paying a fee, making long-term investment possible.
Merrill Lynch has sold cumulative 160 billion dollars in
defined asset funds in the U.S., and may set up more in
Japan in specific industry sectors such as communications
or biotechnology.
(The Nikkei Financial Daily Tuesday edition)
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