Asset management in Japan - statistics & facts
The Japanese government intends to transform Japan into an international center for asset management and shift a substantial amount of Japanese household assets, of which almost half are held in cash and deposits, into investments. The plans are part of a series of measures aimed to introduce a new form of capitalism and create a virtuous cycle of growth and distribution in Japan.
As of March 2024, assets under management in the investment management industry amounted to 635.7 trillion Japanese yen. Japan’s largest seven asset managers, among them Asset Management One, Mitsubishi UFJ Kokusai Asset Management, and Nomura Asset Management, are all affiliated to major financial groups. But there are also independent asset management firms and international players.
Japanese households held around 2.1 quadrillion Japanese yen in financial assets in 2024. More than 50 percent of these were not invested but held as cash or deposits. The government intends to encourage wealth accumulation among individuals by shifting larger amounts of households’ savings into investments, for example through tax-advantaged schemes, such as the Nippon Savings Investment Account (NISA) and defined contribution pension plans.
The asset management industry is considered a major stakeholder in this, and there are plans to strengthen the industry through reform and make Japan an international center for asset management by creating special zones for financial and asset management businesses and facilitating market entry procedures for international asset management firms.
As part of its overall plan to boost investment in Japan, the government has set out a series of measures to reform the asset management industry. This could lead to increased competition and strengthen the position of asset management in Japan’s financial services industry.
Investment management and advisory business in Japan
The investment management and advisory industry in Japan is broadly divided into two different business categories: the investment management business and the investment advisory and agency business. In the investment management business, discretionary investment management firms are authorized to manage clients' assets on their behalf. They also engage in fund management. Non-discretionary investment advisory firms, on the other hand, are limited to providing financial advice.As of March 2024, assets under management in the investment management industry amounted to 635.7 trillion Japanese yen. Japan’s largest seven asset managers, among them Asset Management One, Mitsubishi UFJ Kokusai Asset Management, and Nomura Asset Management, are all affiliated to major financial groups. But there are also independent asset management firms and international players.
Plans to boost investment income and reform the asset management industry
In 2022, the Japanese government under Prime Minister Kishida formulated a policy plan to introduce a new form of capitalism to Japan. Hoping to boost the economy and initiate a virtuous cycle of growth and distribution, it wants to channel household savings into investments.Japanese households held around 2.1 quadrillion Japanese yen in financial assets in 2024. More than 50 percent of these were not invested but held as cash or deposits. The government intends to encourage wealth accumulation among individuals by shifting larger amounts of households’ savings into investments, for example through tax-advantaged schemes, such as the Nippon Savings Investment Account (NISA) and defined contribution pension plans.
The asset management industry is considered a major stakeholder in this, and there are plans to strengthen the industry through reform and make Japan an international center for asset management by creating special zones for financial and asset management businesses and facilitating market entry procedures for international asset management firms.
As part of its overall plan to boost investment in Japan, the government has set out a series of measures to reform the asset management industry. This could lead to increased competition and strengthen the position of asset management in Japan’s financial services industry.
