Boston, MA 06/23/2014 (wallstreetpr) – Nomura Holdings (OTCMKTS:NRSCF) is an international asset management firm that is also trying to break from the tradition to boost performance in an increasingly competitive business environment.
The company has borrowed a leaf from Morgan Stanley (NYSE:MS) whereby it is urging brokers to gather deposits and offer loans to clients. That is happening at a time when the company is facing growing competition domestically and internationally.
According to the executive director of banking and trust agency of Nomura, Naoshi Sakai, the company intends to at least double its loans to individuals within the next five years. As such, starting this August, the company is considering offering to new clients a package of brokerage and lending services. That package will require customers to open deposit accounts with Nomura Holdings (OTCMKTS:NRSCF).
Eyes on Mena
In addition to breaking away from tradition to attract individual clients through a package that clubs brokerage and lending services together, the company is also showing renewed interest in Middle East and North Africa region (Mena).
The company’s interest in the region is linked to the fact that markets in the Gulf are show promising performance than those in other emerging economies such as Thailand. As such, after reassessment of the Gulf, Nomura moved to change its coverage of the region by establishing a local office. The company this month opened its first Gulf office in Dubai where it has five staff members.
The markets of Qatar, UAE and Saudi Arabia, for instance, have been traditionally covered from New York and London. However, international asset management companies are moving to set up shops in the region because of the increase in business in the region. Although asset managers are moving to tap opportunities in Mena, the entry is still in a small scale because of the modest size of the market.
Other players
Some other players showing growing interest in Mena include Lazard Asset Management that established a team of six to cover Mena from a Dubai base. The U.S. firm has $176 billion assets under management globally, and it already has a station in Bahrain.
Ashmore Group is another asset management firm that plans to open its first regional office in the Gulf with Riyadh and Dubai being touted as possible bases. The firm has $70 billion in assets under management.
Nomura Holdings (OTCMKTS:NRSCF) manages about $7 billion assets in Mena, which suggest a small slice of its global assets under management of $300 billion.
