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Revision of a sectoral classification in the Flow of Funds Accounts

March 19, 2007
Bank of Japan
Research and Statistics Department

In the flow of funds accounts, revision of a sectoral classification will be planned in the retroactive revision on March 23, 2007.

In details, by refining estimation methods, "Noncollectively managed trusts" sector (money trusts other than "collectively managed trusts") in "Other financial intermediaries" in "Financial institutions" will be all consolidated with the original investing entities(note) and "Noncollectively managed trusts" sector will be eliminated.

-- "Noncollectively managed trusts" has included the financial assets and liabilities of the following accounts.

  1. 1) The portion of designated noncollectively invested money trusts and specified money trusts that are not subject to consolidation with the original investing entity (i.e., the original entity entrusting the investment cannot be identified).
  2. 2) Monetary investment fund trusts, asset formation benefit trusts, asset formation investment fund trusts.
  3. 3) Pecuniary trusts other than money trusts (fund trusts, etc.).
  • (note) Noncollectively managed trust accounts hold financial assets and liabilities on their balance sheets, but, in substance, function as investment agents that passively manage their assets under the investors' control. In such cases, accounts of the trustees are consolidated with the original investing entity. For example, offsetting the investing entity's trust beneficiary rights (assets) against the trust account's trust beneficiary rights (liabilities) allows the investment assets of the pension trust account to be posted in the "Pension funds".