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Third Avenue Ripples Felt in Japan as Fidelity Fund Drops

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Fidelity Investments’s Japan-based U.S. high yield mutual fund fell below 1 trillion yen ($8.3 billion) in assets Monday for the first time since September 2013 after the halting of bond fund redemptions at Third Avenue Management rattled credit markets.

Fidelity’s product is Japan’s biggest bond mutual fund, according to data compiled by Bloomberg, and is sold to individual investors in yen. The fund dropped 2.1 percent Monday, bringing its net asset value to 4,662 yen per share, its lowest since October 2012, as Japan’s top 10 high yield funds declined amid a rout in riskier debt.