Foreign fund houses spend significantly more on outsourcing expenses and salaries than local asset managers in Japan, finds a new study, among other conclusions.
Japanese institutional investors will increasingly award mandates to foreign managers and advisers, according to Cerulli Associates and the Nomura Research Institute.
A government taskforce has called for GPIF and other public funds to fundamentally restructure to seek higher returns, diversify and revamp governance.
This year, Japan’s investment trusts will pay around ¥4 trillion in dividends, forcing many to slash payouts or suffer negative cashflows, says Nomura Research Institute.
Management fees for fund houses in Japan appear to have stabilised, but profitability continued to decline in 2010, says Nomura Research Institute.
Nomura Research Institute says Japanese investment firms cannot compete without a serious Asia ex-Japan capability.