Nomura

Recent moves increase uncertainty but support and underscore Nomura Asset Management’s global expansion. It maintains an Above Average Parent rating.

Effective April 1, 2026, CEO Hiroyasu Koike will become the chairman of Nomura Asset Management and head of investment management at Nomura Holdings, overseeing groupwide asset management strategy. Shoichi Okoshi, with approximately 10 years’ experience as the CEO of JPMorgan Asset Management Japan, will succeed him. This external appointment signals a meaningful shift away from the long-standing practice among Japanese financial firms of appointing CEOs from within the group. Okoshi’s global asset management experience should bolster governance as Nomura Asset Management grows internationally.

In December 2025, Nomura Holdings completed its acquisition of Macquarie Group’s US and European public asset management businesses, enhancing its distribution and product capabilities. While the transaction carries strategic significance, there is little overlap between the units’ investment offerings, limiting cultural disruption.

Nomura Asset Management has enhanced transparency for investors by releasing fund review reports, which evaluate funds’ quality and pricing and publicly signal plans for improvements. The firm also began disclosing the names of its portfolio managers in recent years, an uncommon but growing practice in Japan.

It demonstrates a clear commitment to improving outcomes for investors. The firm aligns portfolio manager compensation with the funds’ five-year performance (or since inception for newer funds), aligning interests with investors. It plans to halve its fund lineup by 2030, prioritizing quality over quantity. Although this aims to improve investor outcomes, fund closures can be disruptive, and the acquisition of Macquarie’s asset management business increases uncertainty.

The firm has a sizable investment team in Japan and is expanding its global equity team. It partners with external subadvisors for asset classes outside its expertise, aiming to meet diverse client demand without venturing into particularly niche categories. The firm has delivered solid results, with five- and 10-year success ratios consistently between 50% and 60%.

While many of these developments are positive, the execution of the fund reduction plan, the integration of Macquarie’s business, and a new leader from outside the firm introduce uncertainty. Still, Koike’s ongoing involvement as the chairman supports continuity.

Note: This share class' Parent Pillar rating is analyst-driven, as its Branding Name, Nomura (Branding Name ID: BN000009JT), is covered by Morningstar Manager Research.