Nippon Capital AM Considers Cutting Management Fees

Nippon Capital AM is said to be considering a broad-based cut in management fees for institutional clients.

Osaka, JAPAN - In what is being widely-regarded as a move to exert pressure on rivals in the highly-competitive Asia Pacific wealth management industry, Nippon Capital AM (Nippon Capital Asset Management J-LLC), the Japan-based investment house and wealth manager, is reportedly considering a broad-based reduction in its charges for overseeing institutional client funds.

The news comes hot on the heels of the firm?s announcement that it had appointed industry veteran, Toshiro Noda to the position of Senior Vice President.

Charles Worth, Executive Vice-President and Co-Chief Investment Officer at Nippon Capital AM explained, ?Toshiro-san has committed to increasing our funds under management significantly and the board has given him wide latitude and discretion in the manner in which he chooses to go about achieving that goal. Our investment performance speaks for itself but competition is fierce particularly from the large US-based banks and financial institutions with operations in our region.?

Institutions are typically paying slightly less than one half of 1% on funds and a reduction in charges would be seen as a shot across the bows of rivals whom Mr. Noda has called ?complacent?. Recently, institutions have been moving to put pressure on under-performing asset managers, some of whose charges have soared from 1/10th of 1% to the current average of ? of 1% over the decades.

?Clients should not have to subsidize under-performance. The manager cannot justify an increase in charges without a corresponding increase in return for the client, hence we are considering cutting charging rates as a show of goodwill to Nippon Capital AM clients and as a way of acknowledging that their continued patronage is of the utmost importance to us,? said Mr. Noda by telephone.

About Nippon Capital AM
Nippon Capital Asset Management J-LLC is a ?fee only? financial advisory service. This way you can be assured that we are acting in your best interests at all times. Other services have ?special? relationships with banks and financial institutions, from which they are paid a negotiated percentage of any deals that they broker on their behalf. These third party arrangements distort how investments should be dealt with presenting a clear conflict of interest. We do NOT operate in this manner and offer total commitment to our valued clients, without receiving any compensation from third party sources in the industry.

Nippon Capital Asset Management J-LLC operates under the strict guidelines of the Fiduciary Standard of Care (FSC). We are bound to a code of conduct that holds the clients interest in paramount position.

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