RetireJapan

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.

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).

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/

captainspoke wrote: ↑Tue Oct 11, 2022 8:19 am 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!

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

RetireJapan wrote: ↑Tue Oct 11, 2022 8:08 am 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.

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.

RetireJapan wrote: ↑Tue Oct 11, 2022 8:08 am 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?

captainspoke wrote: ↑Tue Oct 11, 2022 8:19 am 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?

beanhead wrote: ↑Tue Oct 11, 2022 12:49 pm

RetireJapan wrote: ↑Tue Oct 11, 2022 8:08 am 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.