March 15, 1996
TO: INTERNATIONAL COMMITTEE No. 9-96
RE: JAPAN DEVELOPING MUTUAL FUND PERFORMANCE MEASUREMENT SYSTEM
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Under the US-Japan Financial Services Trade Agreement entered into last year, the Japanese
government agreed to take measures to enhance the disclosure of investment trust (mutual fund)
performance data in Japan. (See Memorandum to International Members No. 1-95 dated January 13,
1995.) The Investment Trusts Association of Japan was asked to develop a data bank of information that
could be used by private agencies to assess fund performance.
Last month the Investment Trusts Association announced a plan to collect certain basic data
from its members and to develop a computer system for transmitting the data between the association
and its members. The Association also has taken steps to publish monthly performance data for new
stock funds and to improve the performance disclosure system for existing funds.
Attached is a letter we received from the Investment Trust Association of Japan in response to
our request for information about the new performance measuring system. We would be interested in
your comments on how well the system will serve to permit funds in Japan, including domestic funds
organized by foreign managers licensed as investment trust managers, to compete based on accurate
performance comparisons. The Institute expects to
advise the US Treasury Department, which negotiated the agreement with Japan, of the progress that has
been made in implementing this portion of the agreement. Please provide any comments to me by phone
at 202 326-5826 or fax 202 326-5841.
Mary S. Podesta
Associate Counsel - International
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