Nomura Asset Management shifts focus to longer-term returns
The change is part of a push by Japan's largest asset manager to raise its capabilities closer to those of global peers.
Nomura Asset Management is adjusting its evaluation of portfolio managers to emphasize longer-term investment performance, as part of efforts to elevate the firm's capabilities to match those of global counterparts. In a recent interview, President Shoichi Ohkoshi revealed that Nomura has expanded the timeframes used for assessing fund managers to three, five, and 10 years, replacing the previous one-, three-, and five-year periods.
Instead of focusing on one-year returns, the company aims for managers to demonstrate enduring conviction and a consistent approach to enhancing performance over the medium to long term. This shift is driven by a desire to strengthen Nomura's investment management capabilities amidst rising interest rates and a thriving stock market in Japan, which have expanded investment opportunities.
Ohkoshi emphasized the importance of providing adequate compensation to exceptional managers to ensure they can continue generating long-term performance. He noted that the overall compensation pool for fund managers may increase, contingent upon the company's overall performance. As of the end of June, Nomura's assets under management totaled approximately ¥128 trillion ($809 billion), placing it among the top 50 global asset managers.
With his appointment as the first Nomura AM president from outside the Nomura group, Ohkoshi, previously the president and chairman of JPMorgan Asset Management in Japan, aims to elevate the firm's investment and product capabilities to global standards. He described Japan's asset management sector as still being in a "challenger" position and expressed his goal of accelerating progress towards meeting global standards.
Written by urgent.news from Japan Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.