The move makes Daiwa the second Japanese brokerage, following third-ranked Nikko Cordial, to launch an SMA program (see
Recent financial sector reforms have made it easier for Japanese brokerages to offer SMA products and services. In the U.S., assets held in SMAs totaled $506.6 billion at the end of 2003, according to industry trade association
Japanese investors largely dont invest in stocks or mutual funds, opting rather to conserve cash or use low-interest bank and other deposits. A mere 9% of the nations $12 trillion in assets are put into stocks or investment funds.
Japanese brokerages, whose profit margins have widened on the back of a recovery in Tokyo stock prices, are looking to build market share and grow assets by offering a wider range of investment tools such as SMAs.