Yomiuri: MUFG to Reenter MMF Market Amid Rising Interest Rates in Japan

Dow Jones12-05 17:02
 

By Kaname Sugimoto

Yomiuri Shimbun Staff Writer

 

Mitsubishi UFJ Financial Group Inc. $(MUFG)$ announced Thursday that it will establish a money management fund (MMF) -- an investment trust that mainly invests in short-term government and corporate bonds -- in 2026.

This marks the group's return to the market a decade after the group's withdrawal. Due to the arrival of a "world with interest rates" in Japan, the group expects to see demand even at relatively low interest rates.

An asset management company and a securities company both under the MUFG umbrella were among those that made the announcement.

Utilizing digital technologies like blockchain, the group aims to develop Japan's first "tokenized investment trust." The planned MMF will be the first offering under the initiative.

MMFs do not include stocks, and primarily invest in government bonds and corporate bonds with short-term maturity. Considered highly safe, this type of financial product was once popular. However, their appeal diminished after the Bank of Japan introduced a negative interest rate policy in 2016, leading companies to withdraw from the market.

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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.

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December 05, 2025 04:02 ET (09:02 GMT)

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