Nomura Asset counting on Japanese market enthusiasm to expand global business

The asset management division of Nomura Holdings is leveraging growing investor interest in Japanese assets to expand its global presence, according to its chief executive. Strong equity performance in Japan, alongside rising bond yields that appeal to global investors, has drawn attention to the Japanese market, according to Shoichi Ohkoshi, CEO of Nomura Asset Management.

Speaking with Reuters, Ohkoshi noted that asset allocators are becoming more bullish on Japan, moving from underweight to neutral positions, and the firm aims to push them further into overweight positions by highlighting the attractiveness of Japanese stocks.

This strategy is part of Nomura's broader plan to establish itself as a more global financial player. In 2022, the company acquired Macquarie's US and European public asset management businesses, significantly expanding its footprint and distribution network in markets where organic growth is challenging. Ohkoshi did not provide specific figures on anticipated new asset inflows or customer numbers.

Presently, Nomura Asset Management oversees approximately 156 trillion yen ($985.47 billion), making it Japan's leading investment manager.

From its established base in Japanese and Asian equities, Nomura is aiming to broaden its reach in global equity asset management products. The firm emphasizes its unique position among Japanese asset management companies that truly manage global equities. With the Macquarie acquisition, the company is well-positioned to scale up its operations significantly.

Rising bond yields in Japan present another opportunity for Nomura to enhance its profile among global investors. While yields are still low compared to other countries, sovereign bonds are becoming increasingly attractive as investible assets. Additionally, there is growing demand for credit among Japanese firms, which historically relied heavily on bank lending.

Nomura is actively developing corporate credit products to meet this expanding need, as corporate funding demand outpaces what banks can provide.