Cash out from fund and invest in NISA?

[outhouse_critic]

Hi,
I have about 70,000 AUS dollars in what’s called ‘the Ebisu fund’ managed by Banner Japan (http://www.bannerjapan.com/ebisu-income-fund/). I’ve been wondering if I would be better off cashing that out now and and putting it into a NISA account. I’m approaching the big ‘six-o’ and also plan to work full-time until 65; and then part-time as I’m able. Would appreciate to hear your opinion on whether this makes any sense or not and why. Pros? Cons? Dumb move? Thank you and Much appreciated.

[RetireJapan]

Welcome to the forum!

Investing in Japanese tax-advantaged accounts like NISA might be a good idea, as you will save on any capital gains.

The Ebisu fund is not tax-advantaged, so you would owe 20.315% on any capital gains from it. I'm not sure of the fees on that fund, but I suspect they are higher than competitive mutual funds in Japan (0.2% or so).

[captainspoke]

It took some searching:

Management Fees and Expenses:
2% per annum of the gross asset value of the Fund.

https://www.bannerassetmanagement.com/o ... come-fund/

[TokyoBoglehead]

It took some searching:

Management Fees and Expenses:
2% per annum of the gross asset value of the Fund.

https://www.bannerassetmanagement.com/o ... come-fund/

That is just horrible!

[RetireJapan]

Seems like in Australia they are not allowed to sell this to normal people:

"Investment in the Fund is limited to Wholesale Investors."

... but of course in Japan they are not really regulated

[beanhead]

The Ebisu fund is not tax-advantaged, so you would owe 20.315% on any capital gains from it.

Only relevant, of course, if any gains have been made...

There are a number of threads on the forum about similar funds and financial advisors. I wonder if the OP read them or not.

[Beaglehound]

Assuming no exit fees it would seem to make sense to exit this fund and invest in something with lower fees and less tax, like NISA.

[outhouse_critic]

Welcome to the forum!

Investing in Japanese tax-advantaged accounts like NISA might be a good idea, as you will save on any capital gains.

The Ebisu fund is not tax-advantaged, so you would owe 20.315% on any capital gains from it. I'm not sure of the fees on that fund, but I suspect they are higher than competitive mutual funds in Japan (0.2% or so).

Thank you. I've been in it for a number of years and I haven't taken any money out so it has grown, therefore there are capital gains. I didn't know there were any fees! Question: when I request to get the money put in my bank account, how does it work in terms of taxes? How do I report it? During tax season in January?

[outhouse_critic]

It took some searching:

Management Fees and Expenses:
2% per annum of the gross asset value of the Fund.

https://www.bannerassetmanagement.com/o ... come-fund/

Thanks for the digging. Dam. So my guy at Banner is getting 2 percent of my fund each year, basically, is that how it works? If I were to move it to a NISA account, then I would be the owner/manager/CEO of everything, correct?

[outhouse_critic]

The Ebisu fund is not tax-advantaged, so you would owe 20.315% on any capital gains from it.

Only relevant, of course, if any gains have been made...

There are a number of threads on the forum about similar funds and financial advisors. I wonder if the OP read them or not.

I did a search and came up with one thread that mentions the Ebisu fund tho I'm still unclear if I should keep it, and open a new, separate NISA account and carry on that way; or cash it out, put it into a NISA account and full steam ahead. Are you folks basically NISA/iDeCo all the way in terms of using your income/cash. Thank you.