Nomura AM's new president to extend evaluation periods to three, five and ten years

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Summary · why it matters

Nomura Asset Management will lengthen the evaluation period for its investment staff from the previous one, three and five years to three, five and ten years, shifting to an evaluation and compensation system that is less swayed by short-term performance. The change was disclosed by Shoichi Okoshi, who became president in April this year, in an interview with Reuters, in which he said that to win out in global competition, "investment capability is the very first priority." On pay as well, he said the company will "make pay-for-performance even more sharply differentiated," with a policy of clearly widening the gap according to investment results. Parent company Nomura Holdings acquired Macquarie's U.S. and European public asset management business for 1.8 billion dollars, or about 260 billion yen, last December and integrated it into Nomura Asset Management International; according to Okoshi, an emerging-market equity product was launched domestically in April this year as a publicly offered investment trust, and its assets have topped 200 billion yen. He said efforts are also under way to "export" Japanese and Asian equities through U.S. sales channels, while noting that although the firm is the largest in Japan by assets under management, it ranks only in the global top 40, and that expansion in the U.S. retail market is a challenge.

Impact on assets 1

Financials▲ · 1 stocks
Nomura Holdings, Inc.
8604
▲ PositiveCapitalrelevance

Parent Nomura Holdings' asset-management unit is strengthening investment capability and pay-for-performance after its $1.8bn Macquarie US/European asset management acquisition.

Off-coverage companies 2

野村アセットマネジメント株式会社 (Nomura Asset Management Co., Ltd.)Private▲ Positive
Capitalrelevance

Nomura Asset Management lengthens staff evaluation periods to 3/5/10 years and sharpens pay-for-performance to boost investment capability amid global competition.

野村アセットマネジメント・インターナショナルPrivate▲ Positive
Demandrelevance

Nomura Asset Management International's newly launched emerging-market equity trust topped ¥200bn in assets, and the firm is pushing to export Japanese/Asian equities via US sales channels.