Nikko Asset Management
{{Short description|Japanese multinational investment company}}
{{Infobox company
| name = Nikko Asset Management Co., Ltd.
| logo = File:Nikko_AM_logo.png
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| type = Subsidiary
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| founded = {{Start date and age|1959}}
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| hq_location = Tokyo, Japan
| area_served = Worldwide
| key_people = Nishida Yutaka (executive chair)
| services = {{ubl|Investment management |Asset management |Mutual funds |Exchange-traded funds |Index funds }}
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| aum = {{nowrap|{{increase}} {{US$|320 billion}} (2023)}}
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| parent = Sumitomo Mitsui Trust Holdings
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}}Nikko Asset Management ({{langx|ja|日興アセットマネジメント}}) is a Japanese multinational investment company. It is one of the largest asset managers globally with about $220 billion under management as of December 2023.{{Cite web |last=Wijaya |first=Megawati |date=2023-12-18 |title=Nikko in talks to buy Tikehau stake and form Asia partnership |url=https://www.japantimes.co.jp/business/2023/12/18/nikko-tikehau-stake/ |access-date=2024-05-06 |website=The Japan Times |language=en}} Currently Japan's third largest manager, Nikko aims to grow its funds under management to $415 billion by 2032.{{Cite news |last=Yamashita |first=Akira |date=2024-01-10 |title=Japan's Nikko Asset Management eyes acquisitions in private assets, ETFs |url=https://asia.nikkei.com/Business/Markets/Wealth-Management/Japan-s-Nikko-Asset-Management-eyes-acquisitions-in-private-assets-ETFs |access-date=2024-05-06 |work=Nikkei Asia}}
The company was formed by the merger of Nikko Securities Investment Trust and Management and Nikko International Capital Management in 1999. It has been a subsidiary of Sumitomo Mitsui Trust Holdings since 2009 and has been managed as a direct subsidiary since 2019.
History
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.{{Cite web |title=History |url=https://www.en.nikkoam.com/about-us/our-company |access-date=2024-05-06 |website=Nikko AM Global Site |language=en-gb}} The company launched its first fund, the Nikko Bond Fund, in 1961. In 1981, Nikko International Capital Management Co., Ltd. was founded, also opening an office in Tokyo. 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. 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.
In 1999, the companies merged to form Nikko Asset Management.
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.{{Cite news |last= |date=2007-04-27 |title=Citigroup Acquires Nikko |url=https://www.nytimes.com/2007/04/27/business/27nikko.html |access-date=2024-05-06 |work=The New York Times |language=en-US |issn=0362-4331 |agency=Reuters}} 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.{{Cite news |last=Dolan |first=David |date=2007-10-03 |title=Citigroup to buy rest of Nikko in $4.6 bln deal |url=https://www.reuters.com/article/idUST146777/ |access-date=2024-05-06 |work=Reuters}} 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.{{Cite web |last=Bernard |first=Stephen |date=2009-07-30 |title=Citigroup sells stake in Japanese asset manager |url=https://www.sandiegouniontribune.com/sdut-us-citigroup-nikko-asset-management-073009-2009jul30-story.html |access-date=2024-05-06 |website=San Diego Union-Tribune |language=en-US |agency=AP}}{{Cite news |last=Hodo |first=Chikafumi |date=2009-07-30 |title=Citi sells Japan asset manager in $1.2 billion deal |url=https://www.reuters.com/article/idUSTRE56S11N/ |access-date=2024-05-06 |work=Reuters}}
In June 2013, Nikko announced that Shibata Takumi would become chairman starting July 2013 succeeding Charles Beazley.{{Cite web |date=2013-06-06 |title=日興アセット会長に野村出身の柴田氏 |url=https://www.nikkei.com/article/DGXNASDF0500D_V00C13A6EE8000/ |access-date=2024-05-01 |website=日本経済新聞 |language=ja}}{{Cite news |last=Fukase |first=Atsuko |title=Ex-Nomura Exec Shibata To Become Chairman of Nikko Asset Management |url=https://www.wsj.com/articles/BL-MBB-2357 |access-date=2024-05-01 |work=WSJ |language=en-US}} He took over as president and CEO of the company in January 2014.{{Cite web |date=2014-01-10 |title=日興アセット社長に柴田氏 3月まで会長兼務 |url=https://www.nikkei.com/article/DGXNASGC0900Z_Z00C14A1EE8000/ |access-date=2024-05-01 |website=日本経済新聞 |language=ja}}{{Cite news |last=Fukase |first=Atsuko |title=Nikko Asset to Appoint Chairman Shibata as New Chief Exec |url=https://www.wsj.com/articles/SB10001424052702303754404579310291527421598 |access-date=2024-05-01 |work=WSJ |language=en-US}} At the time, Nikko was viewed as preparing to issue an IPO.{{Cite news |date=2013-06-06 |title=Ex-Nomura heavyweight Shibata joins Nikko Asset ahead of IPO |url=https://www.reuters.com/article/nikko-asset-shibata-idINL3N0EI0JS20130606/ |access-date=2024-05-06 |work=Reuters}} During his leadership, Nikko focused on courting international investment with multi-asset products, which Shibata believed were attractive to global investors seeking diversified strategies.{{Cite web |date=2014-04-16 |title=Nikko Asset Management Head Shibata Courts Global Institutions |url=https://www.institutionalinvestor.com/article/2bsul3z63ya4z63dcn37k/portfolio/nikko-asset-management-head-shibata-courts-global-institutions |access-date=2024-05-01 |website=Institutional Investor |language=en}} 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.{{Cite web |last=Drury |first=Amanda |date=2017-09-18 |title=One of Asia's largest asset managers: 'Find fast lanes in slow moving traffic' |url=https://www.cnbc.com/2017/09/18/nikko-asset-management-takumi-shibata-on-stocks-singapore-summit.html |access-date=2024-05-01 |website=CNBC |language=en}} The company also acquired a 15% stake in Cathie Wood's firm ARK Invest.{{Cite web |title=Stefanie Drews president of Nikko Asset Management discusses ETFs and their 10-year growth plan on ETF TV |url=https://www.etftv.net/transcript/stefanie-drews-president-of-nikko-asset-management-discusses-etfs-and-their-10-year-growth-plan-on-etf-tv/ |access-date=2024-05-06 |website=ETF TV |language=en-US}}{{Cite news |last=Appell |first=Douglas |date=2017-08-04 |title=Nikko Asset Management takes 15% stake in ETF boutique ARK Investment Management |url=https://www.pionline.com/article/20170804/ONLINE/170809928/nikko-asset-management-takes-15-stake-in-etf-boutique-ark-investment-management |access-date=2024-05-06 |work=Pensions and Investments}} Shibata stepped down as president and CEO after six years with the company in March 2019.{{Cite web |last=Fedorova |first=Anna |date=2019-03-11 |title=Nikko AM CEO Shibata to step down after six years |url=https://www.investmentweek.co.uk/investment-week/news/3072337/nikko-ceo-shibata-step |access-date=2024-05-01 |website=Investment Week |language=en}}
In 2019, Sumitomo Mitsui Trust Holdings announced that it would make Nikko Asset Management a directly owned subsidiary through a dividend in kind transaction.{{Cite news |last=Noor |first=Neha |date=2019-05-15 |title=Sumitomo Mitsui Trust to acquire Nikko Asset Management from unit |url=https://www.spglobal.com/marketintelligence/en/news-insights/trending/g4IQa75qMOf9zqbzXVG3cA2 |access-date=2024-05-06 |work=S&P Global Market Intelligence}} It was previously held through the Sumitomo Trust and Banking Co which acquired Nikko from Citigroup in 2009.{{Cite web |last=Woelfel |first=Joseph |date=2009-07-30 |title=Citi Sells Nikko Asset Management |url=https://www.thestreet.com/investing/stocks/citi-sells-nikko-asset-management-10557819 |access-date=2024-05-06 |website=TheStreet |language=en-us}}
In February 2022, it was announced that Nishida Yutaka would become chairman of Nikko Asset Management while Stephanie Drews would be promoted to president.{{Cite web |date=2022-02-01 |title=Nikko AM appoints new chair and president |url=https://www.investmentweek.co.uk/news/4044231/nikko-appoints-chair-president |access-date=2024-05-06 |website=www.investmentweek.co.uk |language=en}} Her appointment made Nikko one of only 12.1% of global asset managers headed by a woman.{{Cite news |last=Keohane |first=David |date=2024-03-08 |title=Interview: Stefanie Drews on rethinking strategies for women in finance |url=https://www.ft.com/content/cc0ad8ad-1e8f-42e1-b3e0-837a5c8e9408 |access-date=2024-05-06 |work=Financial Times}}
References
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{{Mitsui}}
{{Major asset management companies}}
Category:1958 establishments in Japan