Investment Business

Pursuing stable profit as the ultimate manager of funds for JA Bank and JF Marine Bank

Ensuring stable profit over the medium to long term through globally diversified investments based on advanced risk management

The Bank plays a role as the ultimate manager of funds entrusted with JA Bank and JF Marine Bank. To fulfill this role, the investment business engages in efficient management taking advantage of economies of scale while continuing to ensure stable profit over the medium to long term and return it to our members as the ultimate objective.
Aiming to achieve this objective, for approximately 20 years since the start of the low-interest rate era in Japan, the investment business has worked on “globally diversified investments” in the global financial markets. We have built a global network using overseas sites including New York, London, Singapore, Hong Kong, Beijing, Sydney and Amsterdam. We control the risks of our overall portfolio by conducting due diligence with ample information and diversifying our investments in assets with different risk-return characteristics rather than concentrating investments in limited asset classes.
In particular, we utilize hedging for the risk of exchange rates, which could fluctuate significantly, as much as possible for investment in foreign currency denominated assets.
To pursue the utmost stability of profits for the medium and long term, we constantly review our investment methods and risk management and will continue taking on the challenge of upgrading our globally diversified investments.
In our investment business, we are also engaged in sustainable finance. For example, by actively investing in bonds focusing on gender equality and the world’s largest hydrogen infrastructure fund, we support the development of a sustainable environment, society and AFF industries from an investment perspective.

Bolstering the Asset Management Business—The Norinchukin Group is making group-wide efforts to diversify revenue sources

Under the policy of reinforcing our asset management business, we transferred our credit and alternative investment functions to Norinchukin Zenkyoren Asset Management (NZAM), an affiliated company of the Bank, in fiscal 2021. In addition, we newly established Norinchukin Capital (NCCAP), for private equity investment and Nochu-JAML Investment Advisors (NJIA), for managing domestic real estate private REITs.
NZAM now offers a full lineup of products according to economic cycles and launched its credit flagship fund in August 2022. NJIA has begun managing a domestic real estate private REIT, in which the Bank also has a stake, offering prime yen-denominated investment opportunities. We will continue to ensure the effective use of our management experience to meet diversified customer needs (including ESG investment products).
With the aim of achieving more integrated functioning of the Bank itself and its group companies, the Bank newly established a dedicated team within its Credit and Alternative Investments Division—on the frontline of the investment business—to support the asset management business, thereby strengthening the business on a group-wide basis. Through diversification of revenue sources by acquiring management fees without being subject to economic fluctuations, we will increase and stabilize revenue from the investment business and eventually fulfill the Bank’s Purpose.

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