Hiroyasu Koike, President of Nomura Asset Management, recently discussed plans to increase the share of alternative investments in assets under management from the current 2% to 10% in an interview with Bloomberg. This initiative is in response to growing demand from pension funds and wealthy individuals, leading to the launch of a unique service platform, “Nomura Alternative Connect.” This platform will provide access to the private asset management capabilities of approximately 50 partner firms, including KKR (an US alternative investment house), to a wide ranging client base in Japan. Koike stated that they can offer opportunities to invest in high-quality products from around the world in a one-stop manner and mentioned that there are "endless ways" to create custom portfolios reflecting client needs. He also emphasised the intention to expand the specialised workforce for alternative investments. He noted that selling alternative assets is challenging due to liquidity and risk, where clients need opportunities to acquire the knowledge on the asset class.
Additionally, with the introduction of the new tax-exempt scheme for investment (NISA; Nippon (Japan) Individual Savings Account), individual investors are expected to expand from passive to active management. He anticipates an expansion from passive funds to active funds, where fund managers’ capabilities are tested. Currently, the firm’s in-house share of global active investments is just under 50%, and he stated, "As our first goal, we will work towards achieving a majority."
Check out the original Japanese article here https://lnkd.in/eHFge_9X