Investment Business：The Norinchukin Bank

The ultimate goal of the Investment Business is to return profits to our members by efficiently managing JA Bank’s and JF Marine Bank’s funds based on “globally diversified investment” and “taking advantage of economies of scale” as keywords.

We invest across a wide range of assets, including not only traditional ones such as stocks and bonds but also securitized products like CLOs, alternative investments such as private equity funds and hedge funds, project finance, and real estate, leveraging the specialized expertise and networks we have built over many years. Additionally, this business is also committed to sustainable finance through investments in products that contribute climate change mitigation and biodiversity conservation.

Furthermore, aiming to leverage the Bank's investment expertise and diversified revenue sources, we are also strengthening our asset management business centered on our group companies.

USHIKUBO Katsuhiko

Director and Senior Managing Executive Officer
(in charge of Global Investment and Banking)
Member of the Board of Directors
Chief Investment Officer

What is the Investment Business?

Our Investment Business is a domain that aims to continuously return to members the profits gained from globally diversified investments using funds received from members and asset management business with Group companies.

Left: A diagram illustrating diversified investments in stocks, bonds, and credit assets through global locations. Right: An overview of the asset management businesses of the five companies in the group.

Approach to Achieving Medium-Term Vision

Business Environment Outlook for 2030 (Investment Business)

The investment environment is changing, with the demise of the Great Moderation (low inflation, low interest rates, and low volatility), a resurgence of rising interest rates across the globe, and policy adjustments taking place at a greater frequency. On the other hand, the economic cycle to certain degree and the strict financial regulations surrounding our bank remain largely unchanged.
We aim to improve and diversify our revenue sources while bearing in mind what changes and what stays the same over the long term.

Approach to achieving our Vision for 2030

As we look back on our financial management to date, we will further develop globally diversified investments, including a review of the investment and lending portfolio, while taking into account expected changes in the environment.

In addition, as we work to improve the earnings of our lending and asset management businesses, we will strive to build and maintain a sustainable financial and earnings base as well as meet member expectations for stable earnings and functional returns.

Initiatives for fiscal 2024

Initiatives to improve the profitability from fiscal 2025 and onwards

To improve the investment and loan portfolio and enhance profitability from fiscal 2025 and onwards, in fiscal 2024, we sold low-yielding assets consisting mainly of European Government Bonds, US Treasuries and investment-grade corporate bonds. As a result, the market investment portfolio balance at the end of fiscal 2024 decreased to ¥40.3 trillion (down ¥16.0 trillion year-on-year).

In addition, as part of our effort to diversify revenue sources, along with our sale of low-yielding assets, we reviewed our portfolio balance of market risk assets such as bonds and stocks, and invested in a wide range of asset classes including credit risk assets. Furthermore, we undertook organizational reforms such as the consolidation of planning and promotion functions about enhancing profitability of credit risk assets, including those in overseas.

A breakdown of the market investment portfolio of 40.3 trillion yen, accompanied by a pie chart categorized by risk, currency, rate reset maturity, and rating.

What is globally diversified investment?

With the ultimate goal of steady investment returns for our members, we have diversified our investment portfolio globally since 1998, leveraging our scale to invest efficiently and make the best use of the global financial markets. After carefully examining the wealth of information obtained from our global network, including our overseas branches and subsidiaries, instead of concentrating investments in limited markets or assets, we target investments across a wide spectrum of markets and assets with different risk–return characteristics, thereby managing the overall risk of our portfolio. In order to further stabilize earnings over the medium-to-long term, we constantly review our investment methodologies and risk management tactics and unrelentingly pursue sophistication in our internationally diversified investment strategy.

Changes in globally diversified investments

A timeline showing the evolution of international diversified investments, highlighting key events in the investment framework and market environment from 1998 to 2024.

Asset Management Business initiatives

In the asset management business, we expanded our product lineup at Norinchukin Zenkyoren Asset Management (NZAM) to explore external revenue opportunity and provide investment opportunities for our members. In addition, Norinchukin Capital (NCCAP) and Nochu-JAML Investment Advisors (NJIA), which were established in 2021, have steadily conducted sourcing activities to deliver promising investment opportunities.

What is our Asset Management Business?

With the goal of fulfilling and demonstrating the Bank’s Purpose, our Asset Management Business aims to grow and stabilize investment revenue through diversification of revenue sources by acquiring management fees that are less vulnerable to economic fluctuations. To leverage our extensive investment experience and meet our customers’ diverse requirements, since fiscal 2021, we have developed our Asset Management Business with the five group companies listed below as the core. With the aim of further integrating the functions of the Bank and its group companies and strengthen the asset management business, we newly established the Business Development & Strategic Investment division in April 2025.

Initiatives of Group Companies

Group companies	Product offerings	Overview and recent initiatives
Norinchukin Zenkyoren Asset Management Co., Ltd.	Government bonds, listed stocks, credit, alternative investments	NZAM offers a diverse range of investment products and is able to provide a full lineup of products according to economic cycles. By leveraging this strength, the company provides institutional investors with a wide range of investment opportunities while also further enhancing its solutions business in areas such as specialized talent development, portfolio management, and risk management. Additionally, to support asset formation and asset management at JA Bank, NZAM holds seminars for JA customers and study sessions for JA staff.
The Norinchukin Trust & Banking Co., Ltd.	Trust products	Norinchukin Trust & Banking offers a variety of asset management solutions, including debt securitization, loans syndication, and business matching for real estate. The trust bank also offers testamentary trust services to individual customers through JA and JA Shinnoren. In addition, to further expand investment opportunities in the future, in fiscal 2024 Norinchukin Trust & Banking invested in a company that operates a platform for issuing and managing digital assets^. General term for valuable property that can be electronically transferred on electronic data processing systems such as blockchains.
Norinchukin Value Investments Co., Ltd. (NVIC)	Listed stocks	NVIC is an investment firm that pursues long-term returns under the concept of long-term concentrated investments in carefully selected stocks. In addition to serving institutional investors, NVIC also offers the “Ohbune” series of mutual funds for individual investors. It also runs seminars for students and focuses on nurturing investment talent. Currently, NVIC is also promoting the adoption of defined-contribution corporate pensions.
NCCAP	Private equity, corporate venture capital	NCCAP manages its own private equity funds and invests in companies at various stages, from start-ups to mature companies. In fiscal 2024, NCCAP closed one new buyout acquisition, and strategically invested in a variety of domestic and overseas companies with focus on start-ups, through its innovation investment fund.
Nochu-JAML Investment Advisors Co., Ltd.	Private REIT with domestic focus	NJIA provides real estate investment opportunities to institutional investors through the management of its private REIT (Nochu JAML REIT Investment Corporation) and private real estate funds (entrusted with management and advisory services covering such assets as SPCs).Targeting a wide range of domestic real estate assets, including offices, commercial facilities, residential properties, and logistics facilities, NJIA addresses the needs of investors seeking stable real estate income. As of March 31, 2025, NJIA manages 25 investment properties, with total assets under management of approximately ¥70 billion. Additionally, NJIA supports the corporate real estate (CRE) strategy needs of customers of the Norinchukin Group.

Current Challenges and Direction of Responses

Current Challenges

The market environment remains volatile in reflection of political and monetary policies in various countries and broader geopolitical risks. We recognize the need for establishing and managing loan and investment portfolios that can withstand various risks and market conditions as well as enhancing the sustainability of our financial foundation and profitability base.

Direction of Responses

We are more effectively balancing our portfolio to diversify revenue sources while aiming to controlling risks of market abruptness. We are also striving to enhance profitability in each areas such as market risk assets, credit risk assets, and asset management business.

Investment Business

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