As part of their overseas promotional activities, from late-February to early-March 2017, JIAM representatives conducted interviews with 47 foreign active asset management firms. We summarized the voices of these firms on tapping into the Japanese market. You will notice that whilst there are challenges to overcome and needs to be satisfied, several asset management firms see an opportunity and have shown a willingness to conduct business in Japan.
Example of voices;
Japan, along with Australia and South Korea, is the largest pension market in Asia, so we are very interested in the business potential in Tokyo.
Japan is an attractive market due to its size and the sophistication of technologies; our firm might be able to invest in Japan if the right opportunity is there.
It is extremely challenging to serve Japanese pensions; it is painful due to onerous reporting and unrealistic liquidity requirements especially in this volatile market environment.
The biggest problem is the inability to promote ourselves without a license. We have basically written off Japan because of this requirement.”