20 firms propose fund plans for sale via Japan post offices

Japan Post said Friday 20 asset management companies have proposed a total of 23 investment trusts for its plan to sell funds through post offices.

Japan Post has solicited fund schemes as it plans to sell three types of low-risk investment trusts — an investment product similar to a mutual fund — through part of its post office network, starting in October.

While two of the three funds will be linked to the 225-issue Nikkei Stock Average and the broader Tokyo Stock Price Index, the third one will be designed for globally balanced investment.

Japan Post finished accepting plans for the first two funds Thursday and will do so for the third fund July 28.

Japan Post will select three investment products by mid-August and sell them initially at 575 post offices across Japan.

Although the state-backed postal organ did not disclose the names of the 20 companies, an official said they include foreign firms.

Commission revenues Japan Post will earn in fiscal 2005 to next March 31 are projected at 1.4 billion yen, insufficient to cover costs.

The business is expected to climb into the black in fiscal 2008, when 1,550 post offices will be selling the funds.