Revitalizing the Flows of Financial Assets in Japan
To remain a long–term partner trusted entirely by its customers, Mizuho has created and disclosed policies for fulfilling its fiduciary duty* in asset management operations in order to recommend products that are truly in the best interest of its customers, and implements measures from the customers' perspective.
*Fiduciary duties is a general term for the broad range of various roles and responsibilities that fiduciaries are expected to fulfill when engaging in certain business activities in order to live up to the trust that is placed in them by their customers.
Develop and offer asset formation products that will provide a bridge for individual customers to shift "from savings to investments"
In view of the declining birthrate and aging of the population, there is a strong possibility that the level of payments from public pensions may erode. Accordingly, it will become increasingly important for individuals to build their asset portfolios through asset management on their own initiative.
According to the "2014 Actual Valuation of the Employees' Pension Insurance and the National Pension," prepared by Japan's Ministry of Health, Labour and Welfare, the income replacement ratio* was 62.7% in fiscal 2014, but the outlook is for a gradual decline to 50.6% by fiscal 2043. In addition, it is necessary to consider the possibility that cash and deposits set aside by individuals for their retirement would be eroded by inflation.
In view of this pension market environment, to meet the medium– to long–term asset formation needs of individual customers, Mizuho is working to develop and offer asset management products that will lead to the shift "from savings to investments." In addition, through these initiatives, we will contribute to vitalizing domestic financial assets.
*This ratio shows the amount of public pension payments that pensioners receive when they begin to receive pensions at age 65, compared with the cash salaries received (including bonuses) of persons of working age.
Initiatives to Promote NISAs and Junior NISAs
The system for Nippon Individual Savings Accounts (NISAs) was launched in January 2014 and partially amended in January 2016, when the Junior NISA system was also launched. The promotion of NISAs is expected to encourage young people and others with little investment experience to become more interested in investing and asset formation. MHBK and MHSC promote ideas for growing assets with NISAs in a bid to encourage the use of NISAs.
On the service front, Mizuho provides services that aim to get customers more interested in investing, such as Payroll Deduction NISAs, which gives customers the option to build up their investments through automatic payroll deductions at their employer.
On the investment information front, MHBK and MHSC proactively hold seminars and consultation sessions that are attended by a large number of customers. Thanks to these initiatives, as of March 31, 2016, MHBK and MHSC have received a combined 630,000 or so applications to open NISAs.
Mizuho will continue to help its customers accumulate assets while invigorating the domestic finance sector by proactively promoting the use of NISAs.
SMART FOLIO (Robo–Advisor)
This service is provided over the Internet and gives suggestions for investment trust portfolios based on customers' risk appetite for free of 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 approach analyses, and support them to select savings–type insurance products.