Effective allocation of local capital - A catalyst for Japan


Effective allocation of local capital could be a significant catalyst for Japan

Another tool to spur growth and end deflation

In 2013, the Nikkei 225 stock index surged by 57%. Market participants are quick to point out that the primary beneficiaries of this surge were foreign investors. Broadly speaking, local retail investors and pension/quasi-pension plans did not participate in these out-sized gains.

Executive summary

  • Capital allocation in Japan is not at par with global norms, with majority of assets allocated to cash and deposits 
  • This trend could change with the introduction of NISA, which could lead to households diversifying assets in other asset classes
  • The Government of Japan is initiating several steps, including a new infrastructure investment programme to drive diversification in capital allocation 
  • A significant improvement in capital allocation could act as a significant policy reform in itself and provide a buffer against continued or advanced policies of BoJ and Japanese government
PDF file - size: 759kb

Performance issue 14 – May 2014

Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients. 

Performance issue 14 - PDF file - size: 4.7mb
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