JAPAN ASSET MANAGEMENT MARKET - GROWTH, TRENDS, AND FORECAST (2019 - 2024)

The Japan Asset Management Market is segmented by Asset Class, Source of Funds, Type of Asset Management Firms, and Revenue by Type of Asset Management Firms.

Market Snapshot

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Study Period:

2012-2024

Base Year:

2018

Key Players:

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Market Overview

The Japanese asset management market registered a CAGR of 4.09% during the period, 2012 – 2017.

  • Japan’s mutual fund industry’s assets rose by 5.24% through the first three months of 2019, as investor sentiment improved and global stock markets rebounded amid optimism that negotiations to end the US-China trade war, which roiled markets in 2018. The mutual fund industry had JPY 204.92 trillion (USD 1.83 trillion) of assets under management at the end of March 2019, increased from JPY 194.72 trillion in December 2018. Mutual fund industry’s asset gain in the first quarter of 2019 was largely driven by public funds, almost 90% of which are invested in stocks. Assets of these funds, which are available to both retail and institutional investors, expanded from JPY 105.16 trillion in December 2017 to JPY 113.08 trillion in the first quarter of 2018, a gain of 7.53%. Additionally, JPY 101.52 trillion was invested in equity funds, while JPY 11.56 trillion was invested in bond funds.
  • Japan’s Government Pension Investment Fund (GPIF’s) that is Japan’s public pension fund, which collectively manages two-thirds of Japan’s total pension pool of JPY 305 trillion. While stocks helped the GPIF generate returns for the previous two fiscal years. The GPIF may have no choice, but to invest in equities, as fixed-income yields are too low. It makes a sense for the GPIF to hold some risk assets in this environment because yields are low, globally, and bond investments do not give good returns. However, Japanese pensionsers would have concerns about investments being made in risky assets, as safety is paramount for the pensioners.  

Scope of the Report

The Japanese asset management market covers different segments of asset management, like fixed income, equities, pension, alternative, and hybrid fund, along with insights on return generated by different asset classes and asset management process flow.

Asset Class (2012-2018)
Equity
Fixed Income
Alternative Investment
Multi Asset
Others
Source of Funds (2012-2018)
Pension Funds
Retail Investors
Institutional Investors
Insurance Companies
Others
Type of Asset Management Firms (2012-2018)
Large Financial Institutions/Bulge Brackets Banks
Mutual Funds and ETFs
Private Equity and Venture Capital
Fixed Income Funds
Hedge Funds
Managed Pension Funds
Others

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Key Market Trends

Japanese Pension Funds: Slow but Better Returns

Japan’s Government Pension Investment Fund (GPIF) manages two-thirds of Japan’s total pension pool of JPY 305 trillion in stewardship & ESG activities. Approximately 90% of GPIF’s equity is passively managed, and GPIF invests in a wide weight range of listed companies. GPIF has officially included alternative assets in its portfolio, setting a target of 5% of assets under management for real assets, infrastructure, and private equity. As of March 2018, GPIF invested JPY 196.8 billion in infrastructure, mostly in the United Kingdom (57%), Sweden (15%), and Spain (10%). The internal rate of return from its overall infrastructure investment, since February 2014, was 5.25%, in terms of the US dollar, with a dividend income of JPY 3.3 billion in 2017, demonstrating stable income.

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Rising Assets under Management Increases Revenue of Management Fee

The asset management industry’s aggregate management fee revenues have been increasing since 2012, due to inclusion of pension investment funds in other asset classes. In FY2016, the management fee revenue was JPY 730 billion, decreased by about 5% from FY2015 and in parity with revenues’ of FY2014 level. The decline in revenues was largely attributable to a decrease in annual average investment trust of assets under management. Meanwhile, private investment trust of assets under management grew by more than 20% in FY2016, and the share of assets under management in public investment trusts decreased by about 7%. Revenue growths in other segments were insufficient to fully offset the decrease in public investment trust revenues.

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Competitive Landscape

The Japanese asset management market has a sluggish growth, with very low returns. The market presents opportunities for growth during the forecast period, which is expected to further drive the market competition. With multiple domestic players holding significant shares, the market studied is competitive.

Major Players

  1. Nomura Asset Management
  2. Nikko Asset Management
  3. Daiwa Asset Management
  4. T & D Asset Management
  5. Okasan Asset Management

* Complete list of players covered available in the table of contents below

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Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. EXECUTIVE SUMMARY

  3. 3. RESEARCH METHODOLOGY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Technological Innovations

    4. 4.4 Industry Policies and Government Regulations

    5. 4.5 Trends Disrupting the Market

    6. 4.6 Insights on Return Generated by Different Asset Classes

    7. 4.7 Asset Management Process Flow

    8. 4.8 Insights on Fee Structure and Operating Cost

  5. 5. MARKET SEGMENTATION

    1. 5.1 Asset Class (2012-2018)

      1. 5.1.1 Equity

      2. 5.1.2 Fixed Income

      3. 5.1.3 Alternative Investment

      4. 5.1.4 Multi Asset

      5. 5.1.5 Others

    2. 5.2 Source of Funds (2012-2018)

      1. 5.2.1 Pension Funds

      2. 5.2.2 Retail Investors

      3. 5.2.3 Institutional Investors

      4. 5.2.4 Insurance Companies

      5. 5.2.5 Others

    3. 5.3 Type of Asset Management Firms (2012-2018)

      1. 5.3.1 Large Financial Institutions/Bulge Brackets Banks

      2. 5.3.2 Mutual Funds and ETFs

      3. 5.3.3 Private Equity and Venture Capital

      4. 5.3.4 Fixed Income Funds

      5. 5.3.5 Hedge Funds

      6. 5.3.6 Managed Pension Funds

      7. 5.3.7 Others

    4. 5.4 Revenue by Type of Asset Management Firms (2015-2024)

  6. 6. COMPANY PROFILES

    1. 6.1 Nomura Asset Management

    2. 6.2 Nikko Asset Management

    3. 6.3 Daiwa Asset Management

    4. 6.4 Okasan Asset Management

    5. 6.5 T & D Asset Management

    6. 6.6 Meiji Yasuda Asset Management

    7. 6.7 Schroder Investment Management

    8. 6.8 Aberdeen Standard Investment Limited

    9. 6.9 Norinchukin Zenkyoren Asset Management

    10. 6.10 Nissay Asset Management Corporation*

  7. *List Not Exhaustive
  8. 7. FUTURE OF THE JAPANESE ASSET MANAGEMENT MARKET

  9. 8. APPENDIX

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