Nomura Asset Management is leveraging increased global investor interest in Japanese assets to expand its operations and attract new clients, according to Chief Executive Shoichi Ohkoshi. The firm aims to capitalize on the strong performance of Japanese equities and rising bond yields to shift investors from underweight to overweight positions in the Japanese market.
The renewed global investor interest in Japanese assets, coupled with Nomura Asset Management's strategic acquisitions and product development, could lead to significant capital inflows into Japanese markets and boost the firm's international standing.
TOKYO, Oct. 7 (Reuters) - Nomura Asset Management is aiming to expand its global business by attracting new customers, driven by a renewed interest in Japanese assets from global investors, according to Chief Executive Shoichi Ohkoshi. The firm sees opportunities in the strong performance of Japanese equities and the rising attractiveness of Japanese bond yields.
Ohkoshi stated that global investors, who were underweight on Japan during its "lost 30 years" of economic stagnation, are now moving towards neutral positions. Nomura Asset Management's strategy is to further encourage this shift to overweight positions by highlighting the appeal of Japanese stocks. This push for global expansion is part of Nomura's broader strategy to become a more significant international financial player. Last year, the company acquired Macquarie's public asset management businesses in the US and Europe, which Ohkoshi noted has significantly expanded its distribution network in markets where organic growth is challenging.
While specific figures for expected asset inflows or customer numbers were not disclosed, Nomura Asset Management currently manages approximately 156 trillion yen ($985.47 billion), making it Japan's largest investment manager. The firm intends to build its share in global equity asset management products, leveraging its existing strength in Japanese and Asian equities. Ohkoshi highlighted that few Japanese asset managers truly handle global equities, positioning Nomura for significant scaling post-acquisition.
Rising bond yields in Japan also present an opportunity for Nomura Asset Management to enhance its profile among global investors. Although yields remain low compared to other countries, Japanese sovereign bonds are becoming more investible. Additionally, the firm sees potential in developing corporate credit products to cater to growing demand from Japanese companies that are increasingly looking beyond traditional bank lending for funding.
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