Mitsubishi UFJ Asset Management Co. intends to increase its assets under management (AUM) to 200 trillion yen, about three times its level as of the end of March, by around 2036, President and CEO Yutaka Kawakami said during an interview with The Yomiuri Shimbun.
Kawakami took up his post in April. The following is excerpted from the interview.
The Yomiuri Shimbun: What are your aspirations as you take on the role of president?
Yutaka Kawakami: Centered on the eMaxis Slim series of index-linked mutual funds, for which fees are rigorously minimized, our AUM has expanded rapidly over the past few years, and we now have more than 10 million total investors.
Many index products are installment savings plans, and because they are often held long term, they have strong customer retention and generate a steady flow of funds. The stable cash flow and customer base serve as significant assets. The key management challenge is how to leverage them to drive a proactive business strategy.
Ultimately, we aim to become Japan's leading comprehensive asset management firm. Mitsubishi UFJ Financial Group Inc. has set a goal of achieving 200 trillion yen in AUM by the end of March 2030 across the entire group, and we want to achieve 200 trillion yen in AUM on our own within the next 10 years.
Yomiuri: What is necessary to achieve that goal?
Kawakami: The prerequisite is providing our clients with the best possible returns. On that basis, we want to further strengthen our active management capabilities. We need to focus on how much we can develop talent, how many talented individuals we can recruit and nurture, and how we can retain them at our company. To that end, establishing a robust compensation system is absolutely critical.
In active management, we've introduced a team-based system, and our compensation structure is rare among Japanese asset management firms in that it links pay to the specific products a manager is actively managing. If the funds managed by one's team perform well, one's compensation increases.
Product development will also be necessary. In the digital world, it's easier to personalize products, so we need to consider developing active management products tailored to customer needs.
Yomiuri: Could you talk about your determination to expand sales of the eMaxis Slim series, including the "Orukan" (short for "all country") fund?
Kawakami: While we have nearly 7 million holders of just the Orukan fund, we cannot rest on our laurels. We must continue our relentless efforts to deliver the best possible performance. I believe the base of investors using NISA (Nippon Individual Savings Account, a tax-free program for small investments) will continue to expand.
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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.
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