Shift from Flow Revenue Dependence to Stock Revenue

「Other fees received totaled ¥3,110 million, up 3.5% year on year, mainly reflecting trust fees from investment trusts.」

「Other fees received increased 1.3% year on year to ¥1,505 million, mainly due to an increase in investment trust management fees.」

「Other fees received totaled ¥3,004 million, up 16.5% from the previous fiscal year, mainly reflecting investment trust management fees.」

「Other fees received increased 19.7% year on year to ¥1,486 million, mainly due to an increase in investment trust management fees.」

「Other fees received totaled ¥2,577 million, up 7.7% from the previous fiscal year, mainly reflecting investment trust management fees.」

「Other fees received increased 3.2% year on year to ¥1,877 million, mainly due to an increase in investment trust management fees.」

「Other fees received increased 1.1% year on year to ¥1,242 million, mainly due to an increase in investment trust management fees.」

「Other fees received decreased 1.9% year on year to ¥602 million. Although investment trust management fees increased, the decline in FX trading promotion fees received from the exchange was the main factor.」

「Other fees received decreased 9.8% year on year to ¥2,393 million, mainly due to a decline in investment trust management fees.」

「Equity brokerage fees increased 63.0% year on year, while brokerage fees on beneficiary certificates through ETFs increased 393.1%. Other fees received decreased 9.8% year on year to ¥1,818 million, mainly due to a decline in investment trust management fees.」

「Other fees received decreased 6.5% year on year to ¥1,228 million, mainly due to a decline in investment trust management fees.」

「Other fees received decreased 3.8% year on year to ¥613 million, mainly due to a decline in investment trust management fees.」

「Other fees received increased 23.2% year on year to ¥2,654 million, mainly due to an increase in investment trust management fees.」

「In addition to these initiatives, in its investment trust sales activities the company continued to promote the bond fund Nomura PIMCO Global Income Strategy Fund, which is expected to generate stable earnings over the medium to long term. It also expanded its lineup so that customers could choose investment trusts from a broader range of themes, including funds investing mainly in companies whose businesses contribute to achieving the SDGs and resolving social issues, which have attracted attention in recent years, as well as newly launched funds investing in space-related companies. The company also focused on building its investment trust assets under custody.」

「In addition to these initiatives, the company focused mainly on branch-based and call-center trading on sales of the bond fund “Nomura PIMCO Global Income Strategy Fund,” which is expected to generate stable earnings over the medium to long term, with the aim of building assets under custody. It also strengthened its offering of mutual funds investing mainly in companies whose business activities contribute to achieving the SDGs and addressing social issues, areas that have attracted increasing attention in recent years.」

「Other fees received increased 33.1% year on year to ¥637 million, mainly due to higher mutual fund trust fees.」

「As a core initiative, we will focus on increasing mutual fund assets under custody, which play a major role in customers’ medium- to long-term asset formation. All officers and employees will work together to secure stable recurring revenue while helping customers grow their assets.」

「Going forward, our sales, investment research and product divisions will work as one to provide valuable investment information and identify attractive products with foresight. We will strive to build assets under custody, including overseas financial products, and expand earnings.」

「The Group considers building a robust earnings base unaffected by market conditions to be an important challenge in achieving further growth in corporate value. To this end, we will continue working to increase mutual fund assets under custody and margin trading balances, which are sources of stable earnings.」

「Iwai Cosmo Securities Co., Ltd. considered it important, from the perspectives of providing income opportunities and diversifying risk, for customers to include overseas financial products among their investment assets. It therefore focused on handling shares of leading US companies and Turkish lira-denominated bonds offering attractive yields. In mutual funds, it sought to increase sales and assets under custody, mainly of the Shenzhen Innovation Equity Fund, Cybersecurity Equity Open and the Nomura PIMCO Global Income Strategy Fund, which had delivered stable performance during past periods of rising interest rates, for medium- to long-term asset management.」

「Iwai Cosmo Securities Co., Ltd. considered it important for customers to include overseas financial products among their investment assets and focused on handling US equities, which continued to perform well. In mutual funds, it sought to increase sales and assets under custody of the Shenzhen Innovation Equity Fund and the Nomura PIMCO Global Income Strategy Fund, a low-volatility fund expected to deliver stable performance, positioning both as core products for medium- to long-term asset management.」

「Iwai Cosmo Securities Co., Ltd. considered it important for customers to include overseas financial products among their investment assets and worked to expand its overseas product offering, including by handling shares listed on China’s rapidly growing Shenzhen A-share market in addition to US equities, which continued to perform well. In mutual funds, it focused on selling the Shenzhen Innovation Equity Fund and Invesco Japan Growth Stocks Yume Fund, both offering strong growth prospects for medium- to long-term asset management, as well as the Nomura PIMCO Global Income Strategy Fund, a low-volatility fund expected to deliver stable performance.」

「Iwai Cosmo Securities Co., Ltd. considered it important to include overseas financial products among customers’ investment assets, from the perspectives of providing income opportunities and diversifying risk. Accordingly, it strengthened the provision of investment information on US equities, which continued to perform well, mainly through branch-based and call-center trading. For medium- to long-term asset management, it focused on selling products targeting themes with strong growth prospects, including the Nissay AI-Related Equity Fund, the Shenzhen Innovation Equity Fund and the Group’s dedicated mutual fund, Invesco Japan Growth Stocks Yume Fund (nickname: “Mirai no Tamago”). It also equipped sales personnel with tablet devices, worked to improve service through more visual and easier-to-understand product explanations using videos and other materials, and promoted greater operating efficiency. In internet trading, from August 2017 it launched “Day Trade Free,” a new service waiving brokerage commissions, interest and stock borrowing fees for same-day settlement of margin trades, meaning settlement through an offsetting transaction on the day the position is opened, and focused on attracting active traders. It also sought to expand its product range to attract new customer segments, including by beginning sales of outstanding foreign bonds offering attractive interest rates.」

「In internet trading, from August the company began offering a new service, “Day Trade Free,” waiving brokerage commissions, interest and stock borrowing fees for same-day settlement of margin trades, meaning settlement through an offsetting transaction on the day the position is opened. The company focused on attracting active traders who trade frequently.」

「To support customers’ asset management, the company considered it important, from the perspectives of providing income opportunities and diversifying risk, to include overseas financial products among customers’ investment assets. It therefore strengthened the provision of investment information on US equities, which continued to perform well. As part of its proposals for medium- to long-term asset management, the company focused on selling the Nissay AI-Related Equity Fund and began handling newly issued Russian ruble-denominated bonds, actively promoting financial products targeting themes and regions with strong growth prospects.」

「In addition, in branch-based and call-center trading, the company focused on selling “Invesco Japan Growth Stocks Yume Fund” (nickname: “Mirai no Tamago”), its second dedicated mutual fund, investing in small and mid-cap stocks with strong growth prospects. It also expanded its US equity offering in anticipation that policies of US President-elect Trump would boost the economy. In internet trading, it introduced a new flat-fee commission plan limited to margin trading in October and lowered commissions for stock index futures and options trading to among the lowest levels in the industry in December, focusing on creating an environment in which customers could invest more easily.」

「In internet trading, the company also began accepting applications in September for a new flat-fee commission plan limited to margin trading, with trading scheduled to begin in October, and took measures to increase margin trading balances and attract active traders.」

「As part of the Group’s 100th anniversary commemorative initiatives, Iwai Cosmo Securities Co., Ltd. continued from the previous fiscal year to conduct campaigns across its sales channels, namely branch-based, call-center and internet trading, to expand its range of mutual funds and Japanese equities.」

「We will continue to focus on increasing mutual fund assets under custody and margin trading balances, which are sources of recurring revenue, with the aim of moving away from a revenue mix dependent on transaction-based revenue, including stock brokerage commissions.」