Osaka-based investment house, Nippon Capital Asset Management J-LLC reports it will introduce variable performance-related fee structures for all clients in the first quarter of 2016. The initiative will be the latest fundamental change to the firm’s charging structure since Toshiro Noda joined the firm in June of 2015.
The latest change will see the firm offer clients the option of linking their management fee charges directly to the percentage gains in their portfolios.
Toshiro Noda, Senior Vice-President at Nippon Capital Asset Management J-LLC explained, “Typically in our industry, fees have been charged depending upon the size of the portfolio; the larger the value, the smaller the fee. We want to change that to reflect a more value-for-money approach. We want to end discrimination based on the size of the client’s account. We will give them the option to have a flat fee as they do now or to pay a fee that is linked to how well their portfolio performs over the course of a year. If we do well, we get paid more; if we do badly, we get paid less or even nothing.”
Nippon Capital Asset Management J-LLC’s client roster has been the beneficiary of Mr Noda’s fee-reduction program introduced earlier this year to favorable reception from both institutional and private clients. The firm gained a substantial number of clients who were tempted to switch by the lower fees.
“This is another well-thought out proposal from Toshiro-san,” said Charles Worth, Executive Vice-President and Co-Chief Investment Officer at Nippon Capital Asset Management J-LLC. “Performance-related fee charging could be responsible for the next surge in client numbers at our practice and another shot across the bows of what is still a fairly complacent industry,” he added.
About Nippon Capital Asset Management J-LLC
Nippon Capital Asset Management J-LLC is a ‘fee only’ financial advisory service. This way you can be assured that we are acting in your best interests at all times. Other services have ‘special’ relationships with banks and financial institutions, from which they are paid a negotiated percentage of any deals that they broker on their behalf. These third party arrangements distort how investments should be dealt with presenting a clear conflict of interest. We do NOT operate in this manner and offer total commitment to our valued clients, without receiving any compensation from third party sources in the industry.
Nippon Capital Asset Management J-LLC operates under the strict guidelines of the Fiduciary Standard of Care (FSC). We are bound to a code of conduct that holds the clients interest in paramount position.
1-1-43, Abenosuji, Abeno-Ku,
Osaka-Shi, Osaka Abenoharukas