By Nao Sano | Updated on Oct 07, 2026 at 01:00 AM
Asset Management One Co. plans to boost spending on talent over the next three years as rising Japanese interest rates broaden investment choices and push pension funds, university endowments and individuals to rethink how they allocate their money.
The Tokyo-based asset manager expects to invest as much as ¥5 billion ($31.6 million) in personnel over the period, a rise of about 30% from the previous three-year period. The money will go toward hiring people who can advise clients on overall asset allocation and alternative investments, as well as enhancing compensation for portfolio managers.
People capable of assessing an entire portfolio and recommending the optimal allocation are “extremely important,” President Noriyuki Sugihara said in an interview on Oct. 1.
The push reflects a fundamental change in Japan’s investment landscape after decades of ultra-low interest rates. The yield on the benchmark 10-year Japanese government bond briefly climbed above 3.1% in late September and has remained around the highest level in roughly three decades this month, making a wider range of domestic fixed-income products viable investments.
At the same time, inflation is putting pressure on Japanese pension funds and university endowments to improve returns. Individual investors also have more options following an expansion of the country’s tax-exempt NISA investment accounts and higher yields on government bonds for retail investors.
“We need to understand clients’ investment objectives and deliver proposals that are appropriate for them,” said Sugihara, citing schools and pension funds as well as retail investors.
Asset Management One established a portfolio solutions department last year to provide more comprehensive advice to corporate pensions and university endowments across asset classes. It initially began offering the service for foreign equities and plans to expand into overseas bonds and alternative investments.
The company is also expanding its alternatives business as Japanese investors seek assets beyond traditional stocks and bonds. Asset Management One wholly owns an investment-management subsidiary specializing in alternatives including hedge funds and private equity, and has increased staffing there by 40% over the past roughly four years to 67.
In addition to acting as a “gatekeeper” that partners with overseas fund managers to offer their products to Japanese investors, Asset Management One aims to develop its own investment capabilities. Assets in infrastructure-related funds managed in-house have surpassed about ¥100 billion.
“For areas where we have a path to winning, we will continue to explore the potential of the in-house business,” Sugihara said.