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  4. Dec. 2013

Capital Markets & IT -lakyara

Financial institutions are under constant pressure to reduce costs, improve operational efficiency, adapt to regulatory changes and grow their business. NRI believes that a combination financial knowledge and information technology are crucial to the industry’s growth and development. Through our lakyara reports, NRI identifies the various capital markets and IT issues impacting our clients and the future of their business.
*Organization names and job titles are current as of the publishing dates

Dec. 2013

Retail Business

Fund wrap services likely to gain popularity

Hisashi Kaneko

Assets in fund wrap accounts are growing rapidly even as overall investment trust AUM stagnate. Business models with AUM-based revenue streams like the fund wrap model tend to be seen as less profitable than the conventional investment trust sales model. In actuality, however, fund wrap services compare favorably with conventional investment trust sales in terms of profitability. Additionally, fund wrap services mostly offer moderate-risk products to customers who dislike making investment decisions themselves. They accordingly have a large pool of potential customers.

Brokerage Business

Private equity market in Southeast Asia

Takeshi Shimamura

Private equity (PE) investment is growing in Asia. Southeast Asia in particular
is attracting investors’ attention as an attractive PE investment destination.
While Southeast Asia has promising growth prospects from the standpoint of
macroeconomic potential and strong demand for growth capital, competition for investment deals is intensifying in still-immature Southeast Asian markets. Such competition has led to concerns about soaring valuations according to some observers. Amid such an environment, PE investors need to adequately manage beta risk when investing in Southeast Asia.