Financial Services that Contribute to Society | Products and Services
Securitization of Nursing Homes
In the past, nursing care in Japan fell under the domain of the government. However, with Japan's declining birthrate and aging population, it has become necessary to apply market mechanisms and private sector ingenuity to raise the quality of nursing care services in a manner that the country's economy can sustain.
In light of this situation, Nomura Group has developed a new financial scheme for securitizing nursing homes. This is one more way that we can achieve our goal of creating an affl uent society though investment; by providing sustainable financial models for the nursing care sector.
For obvious reasons, a nursing home cannot experience an operation stoppage. Under Nomura Group's securitization method, we partner with a professional nursing home management company, assuring that this professional management company will be on hand to take over as a "back-up operator" should problems arise with running the facility. This feature makes it easier for institutional investors to invest in securitized products backed by nursing home facilities. The new method was developed by Nomura Healthcare Co., Ltd., a Nomura Group company specializing in raising funds and consulting for healthcare and nursing care institutions.
Faced with these social trends and rapid advances in medical technologies, healthcare institutions are confronted with increased capital investment needs. These include new facilities for hospital wards and nursing care facilities, as well as building disease prevention and treatment facilities.
Meeting such funding demands for this new level of capital investment requires diversifi cation of fundraising methods that go above and beyond indirect fi nancing on which it has depended up until now. It is Nomura Group's aim to fulfill our social responsibilities as a fi nancial services company by providing solutions and advice in response to newly arising needs, in addition to developing profi table businesses.
Urban Renewal Private Fund
In December 2006, Nomura Group partnered with the Development Bank of Japan (DBJ) to create the Urban Renewal Private Fund, a real estate equity mezzanine fund. The 50 billion yen fund invests in the equity portion of real estate investment projects.
The Fund is operated by DBJ Nomura Investment Co., Ltd., a joint venture between Nomura Group and DBJ established in November 2006. This real estate investment company was established to respond to diverse needs for risk capital in urban renewal and other real estate projects, so as to contribute to the growth and increased sophistication of financing mechanisms in Japan.
This is not the first time the institutions have worked together. In a partnership that combined their respective strengths, Nomura Group and DBJ established the Urban Renewal Private Mezzanine Fund in May 2004, which has been a pioneer in the fi eld of mezzanine financing for real estate projects. We will apply the knowledge we have gained in mezzanine fi nance through this Fund's activities to equity projects as well, to assist with the capital needs of property development projects, and to contribute to the revitalization of Japan's cities.
In line with DBJ's guidelines for investment and fi nancing activities, the Urban Renewal Private Fund will invest in development projects and liquidity enhancing projects involving offi ces, commercial facilities, logistics facilities, and rental housing.
Nomura Group's SRI (Socially Responsible Investment) Funds
Nomura Global SRI 100 (popularly known as Nomura Global Social Responsibility Investment)
[Managed by: Nomura Asset Management Co., Ltd.]
The fund seeks to achieve investment gains (on a yenequivalent basis) from movements in the FTSE4Good Global 100 Index, an index comprising companies around the world that meet social responsibility standards.
Morningstar SRI Index Open (popularly known as Tsunagari)
[Managed by: Nomura Asset Management Co., Ltd.]
This fund seeks to achieve investment gains from movements in the Morningstar Socially Responsible Investment Stock Index, an SRI index targeting companies listed domestically that is the first of its kind in Japan.
Nomura Global SRI Index Fund DC (for DC pension plans)
[Managed by: Nomura Asset Management Co., Ltd.]
This fund, specifically for defined contribution pension plans, invests in the publicly-offered Nomura Global SRI 100 Fund and its mother fund.
Nomura Japan SRI Index Fund DC (for DC pension plans)
[Managed by: Nomura Asset Management Co., Ltd.]
This fund, specifically for defined contribution pension plans, invests in the publicly-offered Morningstar SRI Index Open Fund and its mother fund.
Financial Services at Japan Post Bank
Investment Trust ProductsNomura Asset Management Co., Ltd., Nomura Group's core asset management company, has an outstanding record as the leading Japanese asset management company in the investment trust and investment advisory businesses. The company took an early lead in globalizing its operations and customer base, aggressively developing business in the US, Europe, and Asia. Nomura Asset Management Co., Ltd. offers a full line of equity and bond investment products, and is continuing to expand its investment trust business.
