==============
Page 1/1
==============

FinancialTimesMondaySeptember161985

AJapaneseInvestment Ba
G
o
l
b
a
l
R
o
l
e
Should
Be
wilillatimmizzammusimmiammunim

resultofthegrowthoffinancialassets 'WHAT:
in
.HOW. DO'
ou
iewrecenttrends inJthae
lcontn
i uetointhefuture.Backin 1961
OBJECTIVES.'
wilyou bewi
panandthedesireofinvestment managers
theTokyocapy
ita
lv
market?
w
e
w
e
r
e
t
hefirsttocreateandoffera bond
P
u
r
s
u
i
n
g
o
v
e
r
t
h
e
n
e
x
t
f
i
v
e
years?
todiversifytheirportfolios.Overthepast year
n
i
v
e
s
t
m
e
nttrustfundinJapan.More recen
rtwo,bothinstitutionsandindividualsUm
in
Umemura:Thispastyear,thepaceof de-o
l
y
,
i
n
1
9
8
4
weirgrosluce.d-HomeTrad
emura:IthinkthestrategyIjust outlined
Japanhavebeenattractedbyhigh returns
velopmenthasbeenrapid.Inkeeping with
t
h
e
fi
i
s
t
h
o
m
Pon
i tstowherewewanttobefiveyears from honeebrokera
verseas.Thetrendtoward international
thedirectionssetforthinthereportof theo
t pacebuyandsell order
n
o
w
Bythen,weareaimingtohavemore Ourinte rrationar-a-C--cor--is
ersifcationofportfoliosshoud
l continue.
U.S.—japanYen—DolarCommitteeinMaydivIw
t
h
a
n
1
1
0
o
f
i
c
e
s
d
o
m
e
s
t
i
c
a
l
y
a
n
d
m
o
r
e
than
ouldalsonotethehighlevelof capital
1984,theauthoritiesliberalizedthe Euroyen
backmanyyears.In1961,wewere in20abroad,alllinkedasago
l balnetwork. And
inflowsasmoreinternationalinvestors divermarket,estabsil hedayenbankers' acceptance
strumentalinsettinguptheJapanFund in
weintendtoprovd
i earangeandquality of
sifytheirportfoliostoincludeJapanese secu(BA)market,andfurtherbroadenedthe partheinUnitedStates.Thispastyear, we
service—forindividualsandinstitutionsla
rities.inThus,althoughbothcapital inflows
ticipationofforeignsecuritescompanies
unchedthefirstEuroyenmoneymarke
J
a
p
a
n
a
n
d
i
n
t
e
rnat
i
o
nal
l
y
—
t
h
a
t
wi
l
gi
v
e
us
andoutflowswilcontinuetogrow,I believe
themarket—asleadmanagersof Euroyen
f
u
nd,whichisbasedin Luxembour
a
n
e
d
g
e
o
n
o
t
h
e
r
e
x
c
e
l
e
n
t
i
n
vestment
banks.
thatto
japanwilremainanetexporteroflongbondissues,asparticipantsin syndicates
Foracompanygenerayl recognized
termcapitalforsometime.
u
n
d
e
r
w
r
i
t
e
g
o
v
e
r
n
m
e
n
t
b
o
n
d
s
i
n
Japan,
and
n
i
g
boundtotradition, I thinkwe have
inother activities.
demonstratedwecanbeefective market
Itwasalsoanimportantyearbecause the
ofinnovativeservci es.Buttheymustbe ser
marketexpands and
'A
S
THE
vci esneededbyourclients.Iamcontinu
termsatwhci ho
l ng-termgovernment bonds
c
a
p
i
t
a
l
f
l
o
w
s
i
n
c
r
e
a
s
e
,
what
issues
d
o
you
lysayingthatwemustgrowwithour client
werebeingissuedmoreclosely reflected
seefacingNikkoSecuritiesasa global
yieldsinthesecondary market. investment
bank?
TheintroductionofaBAmarketwasa sigW
H
A
T
PARTICULAR
services
d
nificantsteptowarddevelopmentoa
f shorty
o
u
r
c
l
i
e
n
t
s
w
a
n
t
f
r
o
m
y
o
u
,
a
n
d
what
are
U
m
e
m
u
r
a
:
T
h
e
r
e
a
r
e
t
h
r
e
e
s
t
r
o
n
g
currents
in
termmoneymarket,butthismarketis onlythefinancialservicesindustry: deregulation,
youdoingtoprovide them?
initsinitialstage.Ibelievethata precondiinternationalization,andthegrowing relitionforthegrowthoftheBAmarketis thea
nceoninformationsystems.Inthese curUfm
ervm
usra,:S
in
caereorel
urycliniegntosnw
aentcombin
a variet
introductionofaful-fledgedtreasury bill
r
e
n
t
s
,
w
e
m
u
s
t
s
t
e
e
r
a
c
o
u
r
s
e
that
will
not
o
s
e
c
i
e
w
e
t
h
market.
onlykeepusintheleadinour traditional
resourcesofNikkoitself,ouroverseas s
Acomparsi onwithothercountriesis reb
u
s
n
i
e
s
s
e
s
but
t
a
k
e
u
s
i
n
to
n
e
w
waters.
sidiaries,andsuchmembersofthe Nikko
vealing.Thesizeoftheshort-term money
A
t
l
h
o
u
g
h
w
e
c
o
u
l
d
d
e
b
a
t
e
t
h
e
merits
of
GroupastheNikkoResearchCenter, Ltd
marketinJapanisonlyone-tenththatof theourstrategy,wehavechosentoremainafulltM
heaNi
keko
Securi
tie
s.;N
Investment
Tru
U
n
t
i
e
d
S
t
a
t
e
s
,
a
t
l
h
o
u
g
h
t
h
e
s
i
z
e
of
o
u
r
econs
e
r
v
c
i
e
f
i
n
anci
a
l
i
n
sti
t
uti
o
n
committed
to
n
a
g
m
e
n
t
C
o
.
,
Lt
d
i
k
k
o
Internati
om
ycisom
one-t
hdird
that
ofsth
eof
Utn
ite
edJapanese
States.
sO
evrvein
gebot
h
in,odiuvrid
ual
smaenrsdhainstitutions.
C
anptuitarelM
aanpaitgaelC
mo
en.,tC
o.,Ltd.;and Nikk
E
v
e
n
p
a
r
e
wi
t
h
t
h
e
i
z
e
h
r
t
h
y
e
a
r
s
c
u
s
t
o
v
e
assumed
V
e
C
Ltd.
capitalmarket,theshcirt-termmoney märheof
ycancometousforanyservice,and we
Oneservci eourcorporateclientswant is
ketissmal.Fortheefficient functioningtwi
g
o
l
balunderwritng.Thedevelopmentof
l
not
di
s
appoi
n
t
them.
acapitalmarketandthesmoothadjustment.
E
u
r
oyenmarketandtheemergenceofthe ye
I
n
p
r
o
v
i
d
i
n
g
a
ful
l
r
a
n
g
e
of
servi
c
es,
w
e
are
ofinterestrates'tomarketforces,the shorta
s
a
ninternationalcurrencyhavepromp
st
r
i
v
i
n
g
f
o
r
b
a
l
a
n
c
e
.
F
o
r
e
e
m
p
e
l
,
t
h
e
ratio
of
termmoneymarketmustbeexpanded. Thus,
u
s
to
strengthenourinternational netw
prof
i
t
s
f
r
o
m
e
q
u
i
t
e
s
r
e
l
a
t
e
d
busi
n
ess
and
of
inadditiontoyenBAsandexisting shorto
f
1
8
o
fices.Wehaveputadditional capi
S
h
o
j
i
Umemura
t
h
o
s
e
f
r
o
m
ot
h
er
securi
t
i
e
s,
s
u
c
h
a
s
bonds
termgovernmentbonds,Japanneedsto cre-andn
i
n
t
o
o
u
rAmericanandLuxembourg su
i
v
e
s
t
m
e
n
t
t
r
ust
s
,
i
s
n
o
w
6
5
:
3
5
.
W
e
are
Presidentsince1981,ShojiUmemurahas 52 iariesan
ateandbuildatreasurybill market. graduayl movingittoward50:50by building
dareintheprocessof establis
yearsofexperiencewithNikko Securities.amercha
ntbankinSydney.InParis,weplan
o
u
r
c
a
p
a
b
i
l
t
i
e
s
f
o
r
t
r
a
d
i
n
g
a
n
d
pl
a
ci
n
g
bonds.
HeiscurrentlyservingasChairmanofThe
youseeasthelonger-range
BondUnderwritersAssociationof Japan. toupgradeourrepresentativeofficeto a
W
H
A
T
-De
T
h
i
s
h
a
s
i
n
v
o
l
v
e
d
a
d
d
i
n
g
staf
f
to
our
bond
implicationsofrecentdevelopments
subsidiary.
operain
tionsbothdomesticalyandabroad. We
theTokyomarket?
Anotherservci einhighdemandis globa
lookforwardtotheintroductionofabond fua
r
e
required
d
e
an
il g,andwehavepa
l cedahigh priorit
t
u
r
e
s
m
a
r
k
e
t
n
e
x
t
m
o
n
t
h
a
n
d
a
r
e
prepared
to
giURCES
Umemura:Asisevidentfromeventsof thetakeadvantageoftheopportunities—for our
o
n
e
x
p
a
n
d
i
n
g
o
u
r
capabi
lities:inthsi area. T
t
o
c
o
m
p
e
t
e
internationally?
pastyear,therapidpaceof deregulation
isandourselves—thatsucha financial
m
n
i
m
i
z
i
e
m
a
r
k
e
t
ri
s
k,
d
e
a
lingskilsare an
cl
i
e
nt
s
bothdiminishingadministrativecontrols fand
e
s
s
e
n
t
a
i
l
c
o
m
p
l
e
m
e
n
t
t
o
o
u
rbrokerage
U
m
e
m
u
r
a
:
T
h
e
a
n
s
w
e
r
t
o
t
h
at
questi
o
n
starts
uturesmarketoffers.Thereisalsotalk of withfinancialresources.Nikkohasanequity
steadilydismantlingtheprevious shelters
u
n
d
e
r
w
r
i
t
n
g
ski
l
s
.
W
e
a
r
e
put
tingin place
la
u
nncehainrgfuture.
adetachablewarrantsmarket in
thathaveprotectedmanyJapanese financial
a24-hourdealingsystemcenteredonour
b
a
s
e
of
Y
4
2
0
bi
l
i
o
n,
or
a
b
o
u
t
$
1
.
7
billion.
t
h
e
institutionsfromthefullforceof compeoperato
i nsinTokyo,London,andNewYork
Thisranksusamongthetopthree securities
Anothermeansofache
i vn
i gbalanceis to
Inanothermovetohelpourclients hedg
tition.
,
c
o
m
p
a
n
i
e
s
i
n
t
h
e
world.
m
a
k
e
u
s
e
of
o
u
r
n
a
t
u
r
a
l
st
r
engt
h
s.
Because
risk,wehavebecomeamemberofthe majo
Moreimportant,liberalizationispresentNaturaly,wemustalsohavethe human
wea
rebasedinJapan,webee
il vewehave an
financialfuturesandoptions exchange
inguswithnewbusn
i essopportunities,a
and
r
e
s
o
u
r
c
e
s
a
n
d
creat
i
v
i
t
y
t
o
b
e
s
t
u
s
e
o
u
r
capivana
tgeforyen-linkedproductsasthe roletalresources.Quitehonestly,Japanese finanOurcustomersalsowantfastdelivery o
atNikko,wehavemovedquicklyto ratio-odfth
eyenasaninternationalcurrency grows.
a
n
deasyaccessto,avarietyof products.
nalizeourinternaloperationsandto allocate
ci
a
l
i
n
st
i
t
u
t
i
o
ns
d
o
n
o
t
a
l
w
a
y
s
compare
well
AndasIjustmento
i ned,weareinan excelmeethedomestcidemandforvariety,we re
managerialresourcestothemost promising
o
n
t
e
chni
c
al
s
t
h
e
reason
is
l
e
nt
p
o
s
i
t
o
n
t
o
h
e
l
p
J
a
p
a
n
e
s
e
investors
who
centlyopenedacreditcardcompany a
leading
businessopportunities.
hi
s
t
o
ri
c
al
.
F
instance,
I
thi
wanttoinvest abroad.
h
aveventureswithothercompaniestopr
Amercianbnksareaheadoftheirja anese
Wealsowantgoodgeographicbalance and
lieWAR .T.1.11 3analysts have
v
ideparticularservices.Tomeethe dema
e
o
e
u
z
e
r
p
a
p
a
r
a
n
s
t
h
n
i
g
o
l
b
a
l
c
a
s
h
m
a
g
e
r
n
t.
But
alreadyhaveasolidpositoninallthe major
f
r
o
mcustomersaroundtheworldfor faste
t
h
a
l
a
r
g
e
m
o
ey
mardrawnattentiontotheemergenceofJapan
arkets.Forexample,weareverystrong in
d
e
liveryofservci es,wehavebeenupgrad
asthelargestnetexporterofcapitalinthem
k
e
t
i
n
j
whi
c
h
to
i
n
v
e
s
t
l
i
q
ui
assets.
S
a
m
u
r
a
i
b
o
n
d
u
n
d
e
r
w
r
i
t
n
g
s
for
Pacific
Bao
u
r
dataprocessn
i gandtelecommun
Toto
citewhatisbothaJapaneseandWestern
world.Whatisyourperspectiveonthese
s
i
n
c
o
u
n
t
r
i
e
s
.
T
h
i
s
p
o
s
i
t
o
n
i
s
attributable
systems.
maxim:necesstiyisthemotherof invention.
flows?
ourlonginvolvementintheregion.For years,
Toprovideanyoftheseservices,wemus
ThenecesstiyisevidentinJapan.The large
w
e
h
a
v
e
b
e
e
n
a
c
t
i
v
e
i
n
t
h
e
R
e
p
u
b
l
i
c
o
f
Korea.
a
s
l
oinvestinpeople.Afterhighly selecti
v
o
l
u
m
e
of
g
o
v
e
r
n
m
e
n
t
d
e
b
t
s
i
s
u
e
s
i
s
leading
Umemura:Fromaneconomci standpoint,
hePeople'sRepubcil ofChina,werecently
recrui
ting,wespendconsiderabletime an
t
o
t
h
e
r
a
p
i
d
d
e
v
e
l
o
p
m
e
n
t
of
a
secondary
bond
thegrowthofcapitaloutflowsisrelatedtotheIonpte
n
e
d
a
r
e
p
r
e
s
e
n
t
a
t
i
v
e
of
f
i
c
e
i
n
Beijing
and
ef
f
o
rt
o
ntrainingnewemployees.Forhighl
market.Liberalizationofinterestrates has
risingsurplusinthecurrentaccount ofarepreparingforanotheronein Qingdao.
s
p
e
c
a
i
zil edareas—suchasbond trading
forcedthedesignofnewsavingsinstruments.
Japans' balanceofpayments.Thissurplus isAsthecoreeconomyinAsia,Japan must
s
w
a
p
s
,
f
oreignexchange,and comput
Slowereconomicgrowthhasprompted scorproe
j ctedtobe$39bilioninthecurrent year
p
a
l
y
a
g
r
o
w
i
n
g
r
o
l
e
i
n
a
s
s
i
s
t
i
n
g
i
t
s
neighbors
y
s
t
e
m
s
—wearcstructuringour organiza
poratetreasurerstofindthelowest-cost capiand$48bilionnextyear.Itisonly natural
r
a
s
i
e
the
capi
t
al
n
e
c
e
s
s
a
r
y
for
economic
t
o
p
r
o
m
otespecialization.Andoverseas,
tal,thusleadingto disintermediation.
thatJapanreexportsitsearningsfrom trade.
deveo
l pment—anddeveo
l ptheirowncapital
h
a
v
e
b
e
e
nfortunateinrecruitngtop-level
N
k
i
k
o
h
a
s
c
o
n
t
r
i
b
u
t
e
d
i
t
s
s
h
a
r
e
of
innovaSecurtiesn
i vestmentaccountsfor approxim
a
r
k
e
t
s
.
W
e
t
a
k
e
t
h
i
s
responsi
b
i
l
i
t
y
seriously
d
i
v
i
d
u
a
l
s
tionsinthepast,andIamconfidentthat we forsenior positions.
matelyone-halfofcapitaloutflows.This isat Nikko.

NIKKO
NikkoSecurities

ShinTokyoBuilding,3-1,Marunouchi3-chorne,Chiyoda-ku,Tokyo100,Japan