This article analyzes the Financial Services Agency's 2025 Progress Report on Asset Management Industry Advancement.
Main Points
1. Current Status of Japan's Asset Management Industry
- Assets under management: 450 trillion yen (8.5% year-on-year growth)
- Number of management companies: 85 domestic, 45 foreign
- Public investment trusts: 160 trillion yen (rapid expansion due to NISA effect)
- Profitability: Operating profit margin 15% (half of Europe and America)
2. Product Governance Issues
- Product proliferation: 6,000 public investment trusts (3 times the U.S.)
- Small-scale funds: 65% below 10 billion yen
- High-cost structure: Average trust fee 1.5%
- Customer orientation: Breaking away from churning revenue dependence
3. Measures to Improve Investment Capabilities
- Talent enhancement: Increased external recruitment of CIOs and PMs
- Investment process: Stock selection utilizing AI
- Risk management: Advanced stress testing
- ESG integration: 35% of all assets under management considered
4. New Growth Areas
- Alternative investments: Expansion of PE and infrastructure investment
- Private markets: Product development for individual investors
- Crypto assets: Beginning to consider as investment targets
- Regional revitalization: Formation of regional enterprise funds
5. 2030 Vision and Measures
- Assets under management: Target 1,000 trillion yen (150% of GDP)
- International competitiveness: Becoming an Asian asset management center
- Talent development: Establishment of asset management graduate schools
- Regulatory reform: Strengthening management company independence
- Tax support: Preferential measures for performance-based fees
The article suggests that Japan's asset management industry is in a transition period and should contribute to national asset formation and Japanese economic growth while pursuing economies of scale and improving investment capabilities.