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Japan mutual funds' value rises despite outflows from bonds

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TOKYO, Oct 12 (Reuters) - The value of Japanese mutual fundmarket rose for a fourth straight month in September as healthyinvestment gains, partly due to a modest recovery in shareprices, helped offset the market's first net outflow sinceFebruary, an industry body said on Friday.

The market saw fresh inflows into equities and propertyfunds launched during the month, but relatively large fundsshifted out from bond funds, resulting ing a net outflow of 13.5billion yen, after net inflows of 143.7 billion yen in August.

The overall value of investment trust funds, a type ofmutual fund known as toushin, gained 168.4 billion yen, or 0.3percent, to 58.75 trillion yen ($748.31 billion) in Septemberfrom a month earlier, the Investment Trusts Association in Japansaid.

"We've seen strong inflows between April and June, butinflows have slowed between July and September. It seemsconfidence of retail investors hasn't been fully restored,"Fumio Inui, vice president of the association, told a newsconference.

The market had suffered net outflows from equities funds forsix straight months through March as uncertainty over globalmarkets hung over the euro zone's intensifying debt problem,Inui said.

But, investors may have taken more risks in September asthey shifted out of bond funds, which are made up of short-termmoney reserve funds, and into equity funds.

Net outflows from bond funds totaled 117.3 billion yen,while equity funds saw net inflows of 103.8 billion yen -- thelargest inflows in three months, data released by theassociation showed.

Japan's benchmark Nikkei average

and broader Topixindex

both posted slight gains in September.

Japan's mutual fund market is the second-largest in theAsia-Pacific region after Australia and the eighth-largest inthe world.

Following is a breakdown of the data:

Net money flows (in yen):Sept AugOverall: -13.5 bln +143.7 blnStocks: +103.8 bln +26.9 blnBonds: -117.3 bln +116.8 bln

Value of publicly placed toushin (in yen):

Sept Aug mth/mthOverall: 58.75 trln 58.58 trln +0.3%Stocks: 48.30 trln 48.01 trln +0.6%Bonds: 10.45 trln 10.57 trln -1.1%

Value of privately placed toushin (in yen):

Sept Aug mth/mthOverall: 28.83 trln 28.34 trln +1.7%Stocks: 28.28 trln 27.79 trln +1.8%Bonds: 545.6 bln 551.1 bln -1.0%Sept Aug mth/mthValue of ETFs: 3.54 trln 3.44 trln +2.9%

Assets in foreign currencies (in yen):

Sept Aug mth/mthOverall: 22.36 trln 22.52 trln -0.7%Stock: 3.58 trln 3.51 trln +2.0%Bond: 12.56 trln 12.63 trln -0.6%($1 = 78.5100 Japanese yen)

(Reporting by Chikafumi Hodo; Editing by Simon Cameron-Moore)

((chikafumi.hodo@thomsonreuters.com))

Keywords: JAPAN MUTUALFUNDS/