January 4, 2012
Nomura Research Institute, Ltd.
Nomura Research Institute, Ltd., a leading provider of consulting services and system solutions, today announced the findings of their annual research report on Japan's Asset Management Business (JAMB). This year's research suggests that the asset management industry's overall operating margin improved largely due to a regulatory change in addition to companies' individual efforts to boost profitability*.
NRI's 2011/2012 JAMB details Japanese investor trends, the current state of the asset management business, asset management firms' priorities, as well as market trends by segment. The findings are a combination of NRI research and NRI's annual survey of asset management companies.
The asset classes in which the largest percentages of survey respondents expect AUM growth of 10% or more are commodities and foreign, chiefly emerging market, assets. Japanese asset management companies' outlook is more bullish than foreign asset management companies' in only two asset classes, domestic bonds (JGBs) and real estate.
"The Euro crisis is affecting the Japanese market, presenting a challenging environment for the asset management industry," said Shin Kusunoki, Corporate Senior Vice President and Asset Management Systems Division Manager, NRI. "Japanese household financial assets total approximately 1400 trillion yen, some of which are expected to flow into mutual funds, providing a lucrative market for new entrants and offering substantial opportunity for revenues from the high demand for foreign-currency denominated assets."
Additional findings include:
Published by NRI's Kusunoki, the 2011/2012 report was authored by NRI's Financial Technology and Market Research Department. Contributors included Senior Researchers: Sadayuki Horie, Hisashi Kaneko, Hitomi Kawahashi, Researcher: Atsuo Urakabe and Consultant: Hiroko Tominaga.
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