Nikko Asset Management

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Nikko Asset Management Co., Ltd.
Company typePublic
Founded1958; 66 years ago (1958)
HeadquartersTokyo, Japan
Area served
Worldwide
Key people
Nishida Yutaka (executive chair)
Services
AUMIncrease US$320 billion (2023)
ParentSumitomo Mitsui Trust Holdings

Nikko Asset Management is a Japanese multinational investment company. It is one of the largest asset managers and Japan's third largest with about $220 billion under management as of December 2023.[1] It is a subsidiary of Sumitomo Mitsui Trust Holdings.

The company currently aims to grow its funds under management to $415 billion by 2032.[2]

History[edit]

Nikko Asset Management traces its roots to the Nikko Securities Investment Trust and Management Co., Ltd. founded in December 1959 opening its office in Tokyo.[3] The company launched its first fund, the Nikko Bond Fund, in 1961.[3] In 1981, Nikko International Capital Management Co., Ltd. was founded, also opening an office in Tokyo.[3] In 1984, Nikko Securities Investment Trust and Management Co. opened an overseas office in New York City while Nikko International Capital Management Co. opened an office in London.[3] Nikko Securities Investment Trust and Management Co. would also open an office in London in 1987 while Nikko International Capital Management Co. opened an office in Singapore the following year and Nikko Securities Investment Trust and Management Co. would open a Singapore office in 1990.[3]

In 1999, the companies merged to form Nikko Asset Management. [3]

In 2007, Citigroup acquired 61% of Nikko Asset Management for $7.7 billion to take majority control in what was the largest foreign buyout ever of a Japanese company.[4] Citigroup attempted to buy out the remaining shares of Nikko later that year at a cost of $4.6 billion to take full control of the company.[5] Two years later, Citigroup sold its stake to Sumitomo Trust and Banking Co, a subsidiary of Sumitomo Mitsui Trust Holdings, in a $1.2 billion deal as it retreated from Japan.[6][7]

In June 2013, Nikko announced that Shibata Takumi would become chairman starting July 2013 succeeding Charles Beazley.[8][9] He took over as president and CEO of the company in January 2014.[10][11] At the time, Nikko was viewed as preparing to issue an IPO.[12] During his leadership, Nikko focused on courting international investment with multi-asset products, which Shibata believed were attractive to global investors seeking diversified strategies.[13] In 2017, Nikko launched a global robotics fund which raised roughly $6 billion USD and was the first of its kind from a Japanese asset manager.[14] The company also acquired a 15% stake in Ark Invest headed by Cathie Wood.[15][16] Shibata stepped down as president and CEO after six years with the company in March 2019.[17]

In 2019, Sumitomo Mitsui Trust Holdings announced that it would make Nikko Asset Management a directly owned subsidiary through a dividend in kind transaction.[18] It was previously held through the Sumitomo Trust and Banking Co which acquired Nikko from Citigroup in 2009.[19]

In February 2022, it was announced that Nishida Yutaka would become chairman of Nikko Asset Management while Stephanie Drew would be promoted to president.[20] Her appointment made Nikko one of only 12.1% of global asset managers headed by a woman.[21]

References[edit]

  1. ^ Wijaya, Megawati (2023-12-18). "Nikko in talks to buy Tikehau stake and form Asia partnership". The Japan Times. Retrieved 2024-05-06.
  2. ^ Yamashita, Akira (2024-01-10). "Japan's Nikko Asset Management eyes acquisitions in private assets, ETFs". Nikkei Asia. Retrieved 2024-05-06.
  3. ^ a b c d e f "History". Nikko AM Global Site. Retrieved 2024-05-06.
  4. ^ "Citigroup Acquires Nikko". The New York Times. Reuters. 2007-04-27. ISSN 0362-4331. Retrieved 2024-05-06.
  5. ^ Dolan, David (2007-10-03). "Citigroup to buy rest of Nikko in $4.6 bln deal". Reuters. Retrieved 2024-05-06.
  6. ^ Bernard, Stephen (2009-07-30). "Citigroup sells stake in Japanese asset manager". San Diego Union-Tribune. AP. Retrieved 2024-05-06.
  7. ^ Hodo, Chikafumi (2009-07-30). "Citi sells Japan asset manager in $1.2 billion deal". Reuters. Retrieved 2024-05-06.
  8. ^ "日興アセット会長に野村出身の柴田氏". 日本経済新聞 (in Japanese). 2013-06-06. Retrieved 2024-05-01.
  9. ^ Fukase, Atsuko. "Ex-Nomura Exec Shibata To Become Chairman of Nikko Asset Management". WSJ. Retrieved 2024-05-01.
  10. ^ "日興アセット社長に柴田氏 3月まで会長兼務". 日本経済新聞 (in Japanese). 2014-01-10. Retrieved 2024-05-01.
  11. ^ Fukase, Atsuko. "Nikko Asset to Appoint Chairman Shibata as New Chief Exec". WSJ. Retrieved 2024-05-01.
  12. ^ "Ex-Nomura heavyweight Shibata joins Nikko Asset ahead of IPO". Reuters. 2013-06-06. Retrieved 2024-05-06.
  13. ^ "Nikko Asset Management Head Shibata Courts Global Institutions". Institutional Investor. 2014-04-16. Retrieved 2024-05-01.
  14. ^ Drury, Amanda (2017-09-18). "One of Asia's largest asset managers: 'Find fast lanes in slow moving traffic'". CNBC. Retrieved 2024-05-01.
  15. ^ "Stefanie Drews president of Nikko Asset Management discusses ETFs and their 10-year growth plan on ETF TV". ETF TV. Retrieved 2024-05-06.
  16. ^ Appell, Douglas (2017-08-04). "Nikko Asset Management takes 15% stake in ETF boutique ARK Investment Management". Pensions and Investments. Retrieved 2024-05-06.
  17. ^ Fedorova, Anna (2019-03-11). "Nikko AM CEO Shibata to step down after six years". Investment Week. Retrieved 2024-05-01.
  18. ^ Noor, Neha (2019-05-15). "Sumitomo Mitsui Trust to acquire Nikko Asset Management from unit". S&P Global Market Intelligence. Retrieved 2024-05-06.
  19. ^ Woelfel, Joseph (2009-07-30). "Citi Sells Nikko Asset Management". TheStreet. Retrieved 2024-05-06.
  20. ^ "Nikko AM appoints new chair and president". //www.investmentweek.co.uk/. 2022-02-01. Retrieved 2024-05-06. {{cite web}}: External link in |website= (help)
  21. ^ Keohane, David (2024-03-08). "Interview: Stefanie Drews on rethinking strategies for women in finance". Financial Times. Retrieved 2024-05-06.
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