Asset formation support initiatives
Due to trends in Japan such as the declining birthrate and aging population, consequent population contraction, and emergence of negative interest rates, the importance of asset formation to prepare for the future is expected to rise going forward.
We are supporting medium– to long–term asset formation by publicly announcing policies regarding Mizuho's fiduciary duties as they relate to asset management, and implementing measures from a customer-focused perspective.
Offering services to meet customers' medium– to long–term asset formation needs
At Asset Management One, we make good use of the investment know-how we have cultivated in our pension business, and provide investment trusts that meet the medium- to long-term asset formation needs of our customers.
For example, we offer a fund which features diversified investment with exposure to a total of eight asset classes in and outside Japan and which makes flexible changes in the portfolio in keeping with the market environment. Thereby, we avoid major losses due to sudden movements in the market and aim for stable returns in the medium to long term. We also offer a fund which selectively invests over the medium to long term in companies with a sustainable competitive advantage, benefiting from global economic growth.
Also, for banks, securities companies, and other intermediaries that market our funds and act as the interface with customers, we make use of our marketing system, which is the largest in Japan, as we also work to upgrade our websites and the content of our investment education programs. By providing support for distributors, we are working to raise the level of understanding among customers, who are ultimately the end investors, and deepen their understanding of the necessity of asset formation, investment methods, and other asset management-related knowledge.
Through continuing these initiatives, we will drive the shift from savings to asset formation and contribute to activating Japan's financial assets.
Promoting use of the NISA system
The Nippon Individual Savings Accounts (NISA) system was introduced as an effective asset formation scheme to stimulate interest among individuals who have little experience in investing, first among the younger generations. Mizuho Bank and Mizuho Securities are offering asset building proposals that include NISAs, and among these are Junior NISAs that are useful in promoting asset formation for the future of children.
In addition, in January 2018, Mizuho began to handle installment-type investment programs through NISAs, and we are currently promoting these products, which are suited to the needs of customers who want to make small but active contributions within the limits of their budgets in NISA schemes.
On the service front, Mizuho provides services that aim to raise customers' interest in investing, such as Payroll Deduction NISAs, which give customers the option to build up their investments through automatic payroll deductions at their employer.
On the investment information front, Mizuho Bank and Mizuho Securities proactively hold seminars and consultation sessions that are attended by a large number of customers. Thanks to these initiatives, as of March 31, 2021 Mizuho Bank and Mizuho Securities have received a combined total of approximately 650,000 applications to open NISAs and have opened about 114,000 installment-type NISA accounts.
Mizuho will continue to help our customers accumulate assets while invigorating the Japanese finance sector by proactively promoting the use of the NISA system.
Initiatives to expand our customer base for Individual Defined Contribution Pension (iDeCo) accounts
iDeCo accounts are private pension plans that allow individuals to make contributions to their pension assets in addition to contributions made through public pension systems. This pension system is well-suited to individuals interested in medium- to long-term formation of self-managed assets for later in life.
Mizuho Bank, as a DC provider offering and promoting related asset management and administration services, is actively promoting these pension accounts.
Specific strengths of the iDeCo-related services offered by Mizuho Bank include a lineup of investment trusts with low fees. In addition, by using the Smart Folio DC management support service offered by Mizuho Bank, individual customers for these accounts can easily identify and select a portfolio of investments that are in keeping with their risk appetites. To make our services easier to use, even for customers new to investing, we at Mizuho Bank are endeavoring to enhance the convenience of our service offerings.
Going forward, Mizuho will work to expand our base of customers working to build their asset balances through our initiatives in the iDeCo field, and thereby contribute to advancing financial asset flows in Japan.
Smart Folio (Robo–Advisor)
This service is provided online and gives suggestions for investment trust portfolios based on customers' risk appetite at no charge. For customers who use Mizuho Direct, the Smart Folio service has value-added functions that aim to help customers reach their investment objectives through goal-based analyses, and support them in selecting savings-type insurance products.