Nomura - 0% fund?

[merrydown]

Hi all,

I've been looking into opening a tsumitate NISA account. I've seen most people advising SBI, Rakuten, etc. for their low fees and range of products.

But as I was browsing the Nomura site, I came across a fund with 0% fees - 野村スリーゼロ先進国株式投信 https://www.nomura.co.jp/retail/nisa/t ... ineup.html- too good to be true? I'm assuming it's a loss leader to entice people into using an otherwise mediocre lineup?

[fools_gold]

Hi all,

I've been looking into opening a tsumitate NISA account. I've seen most people advising SBI, Rakuten, etc. for their low fees and range of products.

But as I was browsing the Nomura site, I came across a fund with 0% fees - 野村スリーゼロ先進国株式投信 https://www.nomura.co.jp/retail/nisa/t ... ineup.html- too good to be true? I'm assuming it's a loss leader to entice people into using an otherwise mediocre lineup?

Looks that way. The fees for the other funds are quite a bit more than the eMaxisSlim equivalents.

If you are planning on mostly investing in developed market stocks and don't mind the narrow choice of funds it's probably not a bad deal. The offer is only for 10 years, after which the fees for the developed markets stock fund aim to be the lowest in the industry and will be no more than 0.11%.

[Kanto]

Two things that would concern me.

1. 設定日 2020/03/16 - It is a very young fund. You cannot look back and see how it was managed or balanced.

2. 純資産総額 0.87億円 - The fund lacks any real capital.

[adamu]

It doesn't look too bad. It's obviously designed to lock you in to their platform, because it's not available anywhere outside of their Tsumitate NISA.

I would be careful with Nomura, they have quite high fees in general. Even if you go for their Tsumitate NISA, probably don't use them for any taxable investments.

This article from March provides a nice objective opinion.

https://www.toushikiso.com/column/toush ... ezero.html

He says the same things as already discussed here: It's a loss leader, it's time a limited offer (10 years), it's only available in their Tsumitate NISA.

Two things that would concern me.

1. 設定日 2020/03/16 - It is a very young fund. You cannot look back and see how it was managed or balanced.

2. 純資産総額 0.87億円 - The fund lacks any real capital.

Kanto's points are also very good and are not discussed in the article.

This article also raises a good point:

実質コストは不明

購入時手数料・信託財産留保額・信託報酬は0円ですが、投資信託にはそれ以外にもコストがかかります。

その他の費用とは、以下のようなものです。
・ 組入有価証券等の売買の際に発生する売買委託手数料
・ 外貨建資産の保管等に要する費用
・ 監査法人等に支払うファンドの監査にかかわる費用
・ ファンドに関する租税　等

Which says that the actual running costs are not known yet, because we have no data for how the fund performs after they've deducted trading fees, exchange fees, auditing fees and taxes.

[Kanto]

It doesn't look too bad. It's obviously designed to lock you in to their platform, because it's not available anywhere outside of their Tsumitate NISA.

I would be careful with Nomura, they have quite high fees in general. Even if you go for their Tsumitate NISA, probably don't use them for any taxable investments.

This article from March provides a nice objective opinion.

https://www.toushikiso.com/column/toush ... ezero.html

He says the same things as already discussed here: It's a loss leader, it's time a limited offer (10 years), it's only available in their Tsumitate NISA.

Two things that would concern me.

1. 設定日 2020/03/16 - It is a very young fund. You cannot look back and see how it was managed or balanced.

2. 純資産総額 0.87億円 - The fund lacks any real capital.

Kanto's points are also very good and are not discussed in the article.

This article also raises a good point:

実質コストは不明

購入時手数料・信託財産留保額・信託報酬は0円ですが、投資信託にはそれ以外にもコストがかかります。

その他の費用とは、以下のようなものです。
・ 組入有価証券等の売買の際に発生する売買委託手数料
・ 外貨建資産の保管等に要する費用
・ 監査法人等に支払うファンドの監査にかかわる費用
・ ファンドに関する租税　等

Which says that the actual running costs are not known yet, because we have no data for how the fund performs after they've deducted trading fees, exchange fees, auditing fees and taxes.

Something else that has been bothering me...

With so little capital, this fund could not possibly purchases all the underlying securities a true index like VT/Emaxis All Country would have.

They claim: 組入銘柄数 ： 1,288 銘柄

I wonder if the are using exisiting indexes?

[adamu]

They are using a mother fund, so this is probably just a free wrapping of an existing fund.

That's a good question though, how does a new index fund get started?

[fools_gold]

They are using a mother fund, so this is probably just a free wrapping of an existing fund.

That's a good question though, how does a new index fund get started?

The financial service companies have different funds for different markets. For example, eMaxis and eMaxisSlim funds share the same mother fund but have different fees.The eMaxisSlim funds are available through online brokerages because they are willing to take a lower cut on the trust fees, whereas bricks and mortar brokerages will carry the eMaxis funds.

[adamu]

This seems like a good write-up of this fund. I've not read it in detail yet.

https://shintaro-money.com/nomura-threezero/