Nomura Asset Management

Nomura Asset Management
Name	Nomura Asset Management
Native name	野村アセットマネジメント
Industry	Financial services
Founded	1959
Headquarters	Tokyo, Japan
Key people	(see Corporate Governance and Management)
Products	Asset management, investment funds, pension management
Parent	Nomura Group

Nomura Asset Management is a Tokyo-based investment management firm offering retail, institutional, and wholesale asset management services across equity, fixed income, multi-asset, and alternative strategies. The firm operates within the global financial services network of Nomura Group and serves clients across Asia, Europe, and the Americas, including pension funds, sovereign entities, insurance companies, and individual investors. Its activities intersect with major financial centers such as Tokyo, London, New York, and Singapore and engage with global markets, counterparties, and regulators.

History

Founded in 1959 amid Japan's postwar economic expansion, the firm expanded alongside the growth of the Tokyo Stock Exchange, the rise of Japan Inc., and internationalization trends epitomized by the Plaza Accord and the liberalization of capital markets in the 1980s. During the 1990s and 2000s it diversified product lines influenced by global events including the Asian financial crisis and the Global Financial Crisis (2007–2008), aligning with developments at institutions such as Bank of Japan and multinational players like Goldman Sachs and Merrill Lynch. The 2010s saw strategic moves toward passive investing, exchange-traded funds inspired by firms such as BlackRock and Vanguard, and regional expansion into markets served by hubs such as Hong Kong and Singapore. In the 2020s, the firm adapted to shifts driven by the COVID-19 pandemic, central bank policy changes at the Federal Reserve and European Central Bank, and sustainability trends championed by frameworks like the Task Force on Climate-related Financial Disclosures.

Business Operations

Operations are organized across retail asset management, institutional mandates, and global distribution channels, interacting with custodians like State Street Corporation and BNP Paribas, and using trading infrastructures tied to London Stock Exchange Group and NASDAQ. The firm services corporate pension schemes of Japanese conglomerates similar to Toyota Motor Corporation and manages mandates for public investors akin to Government Pension Investment Fund (Japan). Product distribution leverages partnerships with banks such as Mizuho Financial Group and securities firms comparable to Daiwa Securities Group while competing with international asset managers including J.P. Morgan Asset Management and Amundi. Back-office functions coordinate with clearing houses like Japan Securities Clearing Corporation and engage legal advisors from firms like Nishimura & Asahi.

Investment Strategies and Products

The product suite spans active equity, passive index funds, factor strategies, fixed income, multi-asset solutions, and alternative investments such as private equity and real estate, often benchmarked to indices from MSCI and FTSE Russell. Passive offerings include ETFs listed on exchanges like Tokyo Stock Exchange and model allocations referencing indices maintained by S&P Dow Jones Indices. Active strategies cover Japanese equity sectors influenced by corporate reforms related to Corporate Governance Code (Japan) and stewardship initiatives akin to UK Stewardship Code. Fixed income products respond to monetary policy signals from institutions such as the Bank of Japan and Bank of England, and hedge strategies may reference volatility instruments traded on venues like Chicago Mercantile Exchange.

Corporate Governance and Management

Senior leadership and the board coordinate with stakeholders including institutional investors, proxy advisors such as Institutional Shareholder Services, and regulatory bodies like the Financial Services Agency (Japan). Governance frameworks reflect standards promoted by organizations such as Organisation for Economic Co-operation and Development and engagement practices mirroring global asset managers like Schroders and UBS Asset Management. Executive appointments and stewardship policies interact with investor groups similar to Japan Stewardship Initiative and international forums such as the International Corporate Governance Network.

Financial Performance and Market Position

The firm’s assets under management have been shaped by market cycles linked to events like the Dot-com bubble and the Eurozone crisis, and by competitive pressures from passive giants like iShares and boutique managers such as Bridgewater Associates. Performance metrics track relative returns against benchmarks compiled by Bloomberg and Morningstar and influence flows from retail platforms comparable to Rakuten Securities and SBI Securities. Market share in domestic and regional markets is influenced by macroeconomic indicators produced by entities like the International Monetary Fund and financial research from Nomura Research Institute.

Regulatory Compliance and Risk Management

Compliance regimes respond to rules set by the Financial Services Agency (Japan), trading regulations at the Tokyo Stock Exchange, and international standards promulgated by the Basel Committee on Banking Supervision and International Organization of Securities Commissions. Risk frameworks integrate market risk, credit risk, and operational risk analytics using methodologies akin to those developed at RiskMetrics Group and stress-testing approaches informed by scenarios tied to events like the 2008 stock market crash. Anti-money laundering and sanctions screening align with guidance from bodies such as the Financial Action Task Force.

Corporate Social Responsibility and Sustainability

ESG integration and stewardship align with initiatives such as the Principles for Responsible Investment and climate disclosure frameworks like the Task Force on Climate-related Financial Disclosures. The firm engages in shareholder dialogue on sustainability issues comparable to efforts by CalPERS and supports green finance instruments that reference standards from entities like the International Capital Market Association. Philanthropic and diversity efforts reflect participation in networks such as Industry Green and regional sustainability coalitions in Asia-Pacific Economic Cooperation.

Category:Financial services companies of Japan Category:Investment management companies