Asset Management Company

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Becoming our customers’ best partner for medium- to long-term asset formation while positively contributing to the realization of a sustainable society and economy through asset management.

Basic policy

By strengthening our investment capabilities and ability to provide solutions in order to enhance the added value provided by our asset management business, we act as part of a unified group to provide products and consulting services which meet customers' ever changing needs. We are providing retail investors with support for medium- to long-term asset formation and providing institutional investors, such as pension funds and financial institutions, with solutions in order to positively contribute to the realization of a sustainable society and achieve medium- to long-term growth in our asset management business. In addition, we are transforming our business processes using digital innovation to build an effective and advanced business base.

Business environment and challenges

In addition to factors such as the aging population and declining birthrate and negative interest rates, the prolonged COVID-19 pandemic is also making the future increasingly uncertain. Within this uncertain environment going forward, retail investors require greater access to a wealth of information and a wider range of investment products and services to assist with asset formation for the future. Pension funds, financial institutions, and similar clients require high level consulting and investment capabilities responding to the increasing diversification of pension plans and investment needs. Given the growing public interest in a sustainable society and economy, including in decarbonization and measures to address climate change, we are also pursuing initiatives to positively contribute to the sustainable growth of companies in our investment portfolio through asset management, as well as to expand investors' medium- to long-term investment returns.

Trends in performance

While the highly uncertain market environment persisted under the COVID-19 pandemic, our Net Business Profits exceeded our fiscal 2020 target due to factors including an increase in our balance of assets under management, primarily from investment inflow to our publicly traded investment trust business. Going forward, we will continue honing our competitiveness and aiming to achieve growth at the Asset Management Company over the medium to long term by strengthening our investment capabilities and ability to provide solutions and by pursuing efficiency.

  1. Gross Profits and Net Business Profits include Net Gains related to ETFs.
  2. Results are based on FY2020 management accounting rules, targets are estimates based on FY2021 management accounting rules.

Progress on key strategies

Focusing on asset management services for retail investors

To respond to the asset formation needs of retail investors, we offer a broad range of products. These extend from products focused on capturing stable medium– to long–term returns, such as our Investment Sommelier Fund, to products invested in global stocks likely to produce high long–term growth, such as our Future World series. We are also optimizing investment in fund wraps and providing products tailored to defined contribution corporate pensions, individual–type defined contribution pension plans (iDeCo), and installment–type NISA. Additionally, we are positively contributing to proactive investment of financial assets in Japan by improving our provision of educational materials on investing and information on products and markets as well as by working together with distributors to provide after–sale services for retail investors.

Related key sustainability areas (materiality)

  • Declining birthrate and aging population, plus good health and lengthening lifespans
  • Sound economic growth
  • Environmental considerations

 

Strengthening our ability to provide products and consulting to institutional investors

To respond to institutional investors' diverse needs, we are focusing on an expanded line of alternative asset products and on ESG investments. For our pension fund clients, we are offering investment solutions which are based on multi–faceted analysis and which account for clients' investment and financial situations, as well as consulting proposals which cover pension plan configuration. For our financial institution clients, we are offering solutions for both assets and liabilities, addressing needs for outsourcing investment of securities and business issues related to deposits in excess of loans.

Related key sustainability areas (materiality)

  • Declining birthrate and aging population, plus good health and lengthening lifespans
  • Sound economic growth
  • Environmental considerations

 

Strengthening our foundations for growth over the medium to long term

To focus on core competencies, we are consolidating our corporate resources, beginning with our personnel, into focus areas. This is enabling us to refine our investment capabilities and our ability to provide solutions and to elevate the added value of our asset management functions. Additionally, we are reinforcing our financial foundations by working to resolve medium– to long–term issues in our cost and revenue structures, and we are strengthening our foundations for business growth over the medium to long term by undertaking innovation and transforming our business processes, among other efforts. At the same time, as a responsible institutional investor, we are doing our part to tackle environmental and social issues, most prominently climate change. In line with this, Asset Management One has become the first asset manager in Japan to announce an interim target for achieving net zero greenhouse gas emissions from assets under management.

Related key sustainability areas (materiality)

  • Industry development & innovation
  • Sound economic growth
  • Human capital

 

Publicly traded investment trust assets under management balance (JPY trillion)

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Balance of publicly traded investment trusts excluding ETFs.

DB/DC pension assets under management balance (JPY trillion)

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Total balance of assets in defined benefit (DB) and defined contribution (DC) pensions (corporate and individual-type DC pensions).

Number of individuals enrolled in iDeCo*(thousand)

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*Individual-type defined contribution pension plans

 

Highlights

Participation in Net Zero Asset Managers initiative

PhotoIn December 2020, Asset Management One became the only Japanese asset management firm to be an initial signatory of the Net Zero Asset Managers initiative, which is committed to achieving net zero greenhouse gas emissions. With the impacts of climate change materializing across a number of fields, we will continue to act as a responsible institutional investor by facilitating the transition to a low-carbon society through engagement and by fulfilling our fiduciary duties to our clients.

Positively contributing to achievement of the SDGs through a global infrastructure debt fund

imageIn January 2021, Asset Management One Alternative Investments (AMOAI) launched its third global infrastructure debt fund. In making investment decisions for the fund, AMOAI assesses the impacts large-scale projects will have on the natural environment and local communities and invests only in those projects which have taken measures to comply with the Equator Principles. In addition, AMOAI has reflected its commitment to positively contributing to achievement of the SDGs through the fund by incorporating in the investment process both measurement and assessment of the impacts of infrastructure projects. We will continue to develop investment products to meet clients’ needs going forward.

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