Asset Management Company
Newly established Asset Management One* will work together with Mizuho's banking, trust banking, and securities functions to provide customers with products and services that will respond to a broad range of their needs
The Asset Management Company works together with its banking, trust banking, securities and companies providing asset management to serve the needs of a wide range of customers, from individuals to institutional investors (pension funds, financial institutions, business corporations, etc.) by providing products and services of the highest quality.
A new asset management company was formed from the integration of DIAM, the asset management functions of MHTB, MHAM and Shinko Asset Management and plays a central role in the Company. This company, named "Asset Management One," began operations in October 2016.
Asset Management One brings together their asset management know–how in the domains of investment trusts, investment advisory, trust banking and life insurance. It will offer products and services that will aim to substantially increase customer satisfaction.
In addition, MHBK and MHTB are in charge of management and administration for DC pension plans*1, which are long–term and tax–exempt asset scheme.
Furthermore, MHTB administers DB pension plans*2, while MHSC is responsible for management of wrap accounts*3 to meet the asset management needs of a wide range of customers.
- *1.Defined Contribution Pension Plan
- *2.Defined Benefit Pension Plan
- *3.Under wrap accounts, individual customers sign discretionary asset management contracts with securities companies or trust banks, and they provide services covering from asset management to administration services.
- Assets under management as of September 30, 2016
Key Aspects of the Company
Conditions in the External Environment
- Expansion of the range of long–term and tax–exempt asset building schemes, including introduction of NISA* and DC pension plan reforms
- Ongoing shift from savings to investment/asset building
- Possibility that public pension payments may be cut in the future due to the decline in the birthrate and demographic aging of the population
- Introduction of a negative interest rate policy by the Bank of Japan
- *NISA: Japanese new tax exemption scheme for investment by individuals
- Strengthening its capabilities for providing products and services to accelerate the shift from savings to investments/asset building among individual customers
- Strengthening the offerings of high–value–added products and services as well as its consulting functions for institutional investors
- Strong capabilities for asset management and product offerings of Asset Management One in which Mizuho's asset management know–how in investment trusts, investment advisory, trust banking, and life insurance were integrated.
Interim Results for Fiscal 2016
Developing product capabilities which is the driver for the asset management business
For individual customers who need stable asset building and solutions for coping with negative interest rates, the Company has provided high–quality products and services that draw on the strengths developed in a variety of business lines of the companies integrated into Asset Management One. These products and services include investment instruments which will be suitable to medium– to long–term asset building as well as products which can substitute for deposits, thus encouraging a shift from savings to investments/asset building.
For institutional investors who have sophisticated asset management needs such as further portfolio diversification and stabilization and identifying alternatives to investments in government bonds, the Company has made full use of the asset management know–how of Asset Management One.
Furthermore, MHTB is staying ahead of developments in Japan's pension fund system, where major changes are taking place, and has expanded its portfolio of consulting services in the pension field, including the launch of fiduciary management services that take over authority and responsibility for asset management on behalf of pension funds.
As a result of these and other initiatives, net business profits for the interim period of fiscal 2016 amounted to JPY 9.0 billion.
- Net Business Profit for Fiscal 2018 (Plan)
- *Before head office expense deduction
- Net Increase in Funds for Domestic Institutional Investors*
- *Net increase in privately placed investment trusts, investment advisory, pension trusts, and publicly offered ETFs for the group as a whole (excluding overseas and public pension funds)
Commencement of fiduciary management services
To respond to the needs of pension funds to outsource asset management to external organizations to fulfill their own fiduciary duties, MHTB has begun to offer fiduciary management services.
A dedicated department was formed in April 2016 for analyzing and reviewing customers' pension portfolios, advising on establishing and reviewing policy asset mix, as well as offering support for examining the concept of pension governance, and overall administration of pension funds.
To implement the original objective of pension funds, which is to provide pension fund members and beneficiaries with stable pension benefits, we will offer services that draw on our experience and know–how as professionals.