Nomura Asset Management Targets Global Investors as Japan Markets Gain Appeal

Nomura Holdings’ asset management arm is seeking to capitalize on growing global investor interest in Japanese stocks and bonds as it expands its international operations and attracts new clients.

Strong gains in Japanese equities and rising government bond yields have put Japan back on the radar of global asset allocators after decades of relatively limited exposure. Nomura Asset Management CEO Shoichi Ohkoshi said international investors are beginning to reconsider their allocations following Japan’s prolonged period of deflation and sluggish economic growth.

“Global investors were underweight Japan over the ‘lost 30 years’,” Ohkoshi told Reuters. He said investors are now moving from underweight positions toward neutral allocations, while Nomura aims to encourage them to become overweight by highlighting the appeal of Japanese equities.

Nomura Asset Management oversees approximately 156 trillion yen ($985.47 billion), making it Japan’s largest investment manager. The company is also playing a key role in Nomura’s broader strategy to strengthen its position as a global financial services group.

Its international expansion received a boost last year when Nomura acquired Macquarie’s U.S. and European public asset management businesses. Ohkoshi said the transaction provided Nomura with a substantially larger footprint and distribution network in markets where organic expansion can be challenging.

Building on its established expertise in Japanese and Asian equities, Nomura now plans to increase its presence in global equity investment products. Ohkoshi said relatively few Japanese asset managers have developed significant global equity management operations, adding that the Macquarie acquisition gives Nomura greater capacity to scale.

Japan’s rising bond yields are creating another opportunity. While yields remain below those in several other major economies, Ohkoshi said Japanese sovereign bonds are becoming investible assets for international investors.

Nomura also sees potential in Japan’s corporate credit market. Japanese companies have traditionally depended heavily on bank financing, but demand for alternative funding sources is increasing.

Ohkoshi said corporate financing needs are expanding beyond what banks can provide, prompting Nomura Asset Management to actively develop corporate credit products aimed at global investors.