Mizuho bumps State Street in list of three largest managers
JAPAN - Mizuho Trust & Banking has broken into the top three largest asset managers in Japan, displacing State Street Global Advisors Japan (SSgA), a quarterly report by the Japan Pensions Industry Database showed.
Sumitomo Trust & Banking maintained its top slot with JPY14.7trn (US$162bn) in assets managed for Japanese defined benefit pension schemes, while Barclays Global Investors stayed in second place with JPY14.4trn. SSgA Japan swapped with Mizuho and slipped to fourth place, with JPY4.7trn in assets. (See charts below)
Mizuho managed JPY10.7trn (US$118bn) as of June 30, an increase of 613% from 18 months earlier, and up 164% from last quarter, the Database showed in its report set to be released tomorrow.
Mizuho started the quarter with one corporate and nine government sector mandates, but rounded out the three-month period by gaining one corporate and public mandate each.
The report said: "As those from the public sector tend to be very much larger, the obvious conclusion is that the bank received a single massive award from an entity such as the Government Pension Investment Fund."
The Japanese pension market consists of two types of managers vying for pension business, said Tokio Marine Asset Management chief executive in London Yuichi Takayama. The incumbent managers, like trust banks and life insurance companies, were the only option for plan sponsors before around 1985, and have a strong foothold in the market. The newcomers are the pure asset management companies, he said.
Takayama said many banks have changed their models to include discretionary pension mandates.
Tokio Marine ranks seventh on the database with JPY3.4trn in assets as of June 30.
The report said: "Those ties are still strong and include the provision of custody and other services."
Top 10 investment advisory companies by Japanese DB pension assets under management: market values yen bn
| March 31, 2008 | March 31, 2009 | June 30, 2009 | March 31, 2008 | March 31, 2009 | June 30, 2009 | |
|---|---|---|---|---|---|---|
| 7 | 1 | 1 | Sumitomo Trust & Banking Co Ltd | 2,592.90 | 14,287.70 | 14,764.20 |
| 1 | 2 | 2 | Barclays Global Investors Japan Ltd | 15,550.50 | 13,472.20 | 14,430.90 |
| 17 | 4 | 3 | Mizuho Trust & Banking Co Ltd | 1,494.30 | 4,047.30 | 10,727.40 |
| 14 | 3 | 4 | State Street Global Advisors (Japan) Co Ltd | 1,722.20 | 4,325.90 | 4,712.30 |
| 2 | 5 | 5 | Nomura Asset Management Co Ltd | 4,467.60 | 4,042.60 | 4,262.30 |
| 3 | 7 | 6 | DIAM Co Ltd | 4,063.80 | 3,155.80 | 3,474.50 |
| 4 | 6 | 7 | Tokio Marine Asset Management Co Ltd | 3,825.80 | 3,222.40 | 3,364.50 |
| 12 | 8 | 8 | Northern Trust Global Investments Japan KK | 2,040.00 | 2,991.40 | 3,219.50 |
| 5 | 10 | 9 | BlackRock Japan Co Ltd | 2,776.60 | 1,939.00 | 2,908.40 |
| 6 | 9 | 10 | Morgan Stanley Asset & Investment Trust Management Co | 2,687.00 | 2,247.90 | 2,463.00 |
Source: 2009 Japan Securities Investment Advisors Association (data)/ Japan Pensions Industry Database (analysis)
Top 10 investment advisory companies by Japanese corporate DB pension assets under management: market values, yen bn
| March 31, 2008 | March 31, 2009 | June 30, 2009 | March 31, 2008 | March 31, 2009 | June 30, 2009 | |
|---|---|---|---|---|---|---|
| 1 | 1 | 1 | Barclays Global Investors Japan Ltd | 3,567.85 | 2,739.35 | 3,054.26 |
| 2 | 2 | 2 | Nissay Asset Management Corporation | 1,994.08 | 1,474.13 | 1,511.46 |
| 4 | 3 | 3 | Tokio Marine Asset Management Co Ltd | 1,590.42 | 1,251.33 | 1,324.69 |
| 3 | 4 | 4 | Daiwa SB Investments Ltd | 1,809.04 | 1,159.17 | 1,286.99 |
| 6 | 5 | 5 | State Street Global Advisors (Japan) Co Ltd | 1,293.95 | 1,080.10 | 1,133.54 |
| 9 | 7 | 6 | J.P. Morgan Asset Management (Japan) Ltd | 953.53 | 1,010.55 | 1,120.58 |
| 5 | 6 | 7 | Sumitomo Mitsui Asset Management Co Ltd | 1,325.86 | 1,055.22 | 1,025.32 |
| 8 | 8 | 8 | DIAM Co Ltd | 1,143.41 | 950.25 | 996.87 |
| 7 | 9 | 9 | Nomura Asset Management Co Ltd | 1,254.98 | 903.19 | 971.58 |
| 11 | 10 | 10 | BlackRock Japan Co Ltd | 930.93 | 817.48 | 841.15 |
Source: 2009 Japan Securities Investment Advisors Association (data)/ Japan Pensions Industry Database (analysis)
Top 10 investment advisory companies by Japanese government DB pension assets under management: market values, yen bn
| March 31, 2008 | March 31, 2009 | June 30, 2009 | March 31, 2008 | March 31, 2009 | June 30, 2009 | |
|---|---|---|---|---|---|---|
| 4 | 1 | 1 | Sumitomo Trust & Banking Co Ltd | 2,327.59 | 14,074.56 | 14,511.61 |
| 1 | 2 | 2 | Barclays Global Investors Japan Ltd | 11,982.66 | 10,732.81 | 11,376.66 |
| 40 | 3 | 3 | Mizuho Trust & Banking Co Ltd | 0.00 | 4,004.91 | 10,356.45 |
| 21 | 4 | 4 | State Street Global Advisors (Japan) Co Ltd | 428.22 | 3,245.79 | 3,578.72 |
| 2 | 5 | 5 | Nomura Asset Management Co Ltd | 3,212.60 | 3,139.37 | 3,290.69 |
| 7 | 6 | 6 | Northern Trust Global Investments Japan KK | 1,987.28 | 2,948.27 | 3,171.26 |
| 3 | 7 | 7 | DIAM Co Ltd | 2,920.37 | 2,205.59 | 2,477.64 |
| 8 | 9 | 8 | BlackRock Japan Co Ltd | 1,845.66 | 1,851.48 | 2,067.23 |
| 5 | 8 | 9 | Tokio Marine Asset Management Co Ltd | 2,235.39 | 1,971.02 | 2,039.78 |
| 4 | 1 | 1 | Morgan Stanley Asset & Investment Trust Management | 2,015.31 | 1,769.92 | 1,977.46 |
Source: 2009 Japan Securities Investment Advisors Association (data)/ Japan Pensions Industry Database (analysis)
Top 5 investment advisory companies by number of Japanese DB pensions mandates held
| March 31, 2008 | March 31, 2009 | June 30, 2009 | March 31, 2008 | March 31, 2009 | June 30, 2009 | |
|---|---|---|---|---|---|---|
| 1 | 1 | 1 | Nissay Asset Management Corporation | 423.00 | 400.00 | 383.00 |
| 2 | 2 | 2 | Barclays Global Investors Japan Ltd | 381.00 | 364.00 | 354.00 |
| 4 | 3 | 3 | Nomura Asset Management Co Ltd | 295.00 | 311.00 | 311.00 |
| 3 | 8 | 4 | Sumitomo Mitsui Asset Management Co Ltd | 314.00 | 198.00 | 281.00 |
| 7 | 5 | 5 | Tokio Marine Asset Management Co Ltd | 195.00 | 208.00 | 217.00 |
Source: 2009 Japan Securities Investment Advisors Association (data)/ Japan Pensions Industry Database (analysis)
More on Japan
Government infrastructure bank to partner with pension funds to support investment
The government will set up an infrastructure bank to support investment and to co-invest alongside investors including pension funds.
UPDATED: RPI to be reformed in 2030, but no compensation for gilt holders
The Retail Prices Index (RPI) will be reformed and aligned with the housing cost-based version of the Consumer Prices Index, known as CPIH, by 2030, the Treasury has confirmed.
Governance Watch - December 2020: No show is no big deal, argues Foxtons
Estatee agent denies a shareholder’s absence from voting is an issue, finds Minerva Analytics.
Market Movers Blog: Sunak to pledge £4.3bn to tackle joblessness
In this live blog, Professional Pensions' sister title Investment Week collates all the breaking market news, analysis and opinion on equity, bond and currency movements as well as the impact of trade wars, tightening monetary policy and the Brexit negotiations....
Industry Voice: Five reasons why investors should now consider small-caps
Attractive valuations and prospects for economic recovery support small-caps
