Investment Management | Business Strategy to Create Economic Value

Strengths, Opportunities, Risks

Strengths
  • Asset management specialization with ability to generate competitive performance by leveraging the expertise and creativity of each company within the division
  • Access to the Group's excellent and broad client base
  • Ability to create new businesses and operate efficiently using the Group's financial resources, talent pool, knowledge and IT infrastructure
Opportunities
  • O-1 Japan's abundant individual financial assets, and the government's plan to double asset-based income acting as a tailwind
  • O-2 Growth of investment in private assets (in particular Japan, high-net-worth individuals)
  • O-3 High levels of funding demand and investor awareness for sustainability-related investments
Risks
  • R-1 Changes in competitive environment:
    Lower management fee rate due to increased competition, and commoditization of products that will occur before the full-scale launch of new business areas
  • R-2 Changes in business environment:
    Changes in investor needs, preferences for passive (Index) investing, and changes in distribution models due to digitalization
  • R-3 Changes in operating environment:
    Impact of adverse market conditions on asset management performance

Key Priorities of Medium to Long-Term Strategy

* Please scroll horizontally to look at table below.

Strategic Themes Opportunities & Risks Remarks
Point A
Increase assets under management and provide higher value added products and services in public markets businesses
O-1
O-3
R-1
R-2
R-3
  • Publicly offered investment trusts: Provide products that support individual investors build long-term assets and improve competitiveness by strengthening product governance
  • DC & ETF: Expanding product lineup and investor base
  • Strengthen in-house management, increase sustainable investment strategy, and expand global footprint
Point B
Expand investment base in alternative assets
O-1
O-2
O-3
R-1
  • Provide investment opportunities by leveraging gatekeeping investment capabilities and expand in-house investment strategy
  • Scale up domestic private sector business and launch full-scale private asset management business in the US
  • Entry into real assets areas such as real estate and forestry assets
  • Leverage the Group's comprehensive strengths: Early commercialization and distribution through deploying talent and financial resources, sourcing of investment projects
Point C
Increase efficiency and control costs
R-3
  • Group-wide unification of IT system infrastructure
  • Improve operational efficiency: Leverage corporate support functions, pursue outsourcing opportunities

Milestones

KPIs/KGI towards FY2024/25

* Please scroll horizontally to look at table below.

    FY2022/23 /
March 2023 (Actual)
FY2024/25 /
March 2025 (Target)
KPIs Assets under Management ¥67.3 trillion ¥75.8 trillion
Net inflows -¥0.8 trillion ¥3 trillion
KGI Income before income taxes ¥43.5 billion ¥63 billion