State of the Market - Current Development in the Asset Management Industry in Japan

In a September 2023 speech, Prime Minister Fumio Kishida shared his vision to create a vibrant asset management industry in Japan. Urging investors to evaluate the strength of the Japanese economy and their plans for the future, the Kishida administration has plans to make more attractive investment products available to retail investors for them to have greater investment options. Attracting overseas fund managers to Japan is critical because there is currently a small pool of talent in the fund management sector. Barriers to entry must be remedied through deregulations and structure reforms to attract the fund managers and other professionals needed to reinvigorate this market sector. Around 800 trillion yen ($5.41 trillion) in assets are managed by Japan’s asset management sector – up roughly 50% in three years – and the Kishida administration has no plans to slow its push for new entrants.