Nomura’s India Move: A Sign of the Future for Global Investment Operations?
Japan’s Nomura Asset Management is strategically shifting administrative tasks related to investment trusts and other investments to India. This isn’t an isolated decision; it’s a response to the increasing global adoption of next-day settlement cycles, a trend reshaping the financial landscape.
The Push for Faster Settlements
Traditionally, settling investment trades could seize several days. The move towards next-day (T+1) settlement – where trades are finalized within 24 hours – is gaining momentum worldwide. This shift demands increased efficiency and streamlined operations, prompting firms like Nomura to seek cost-effective solutions.
Why India? The Appeal of Outsourcing
India has emerged as a prime location for outsourcing financial operations due to several factors. These include a large, skilled workforce, competitive labor costs, and a growing infrastructure supporting the financial services industry. Nomura’s decision aligns with a broader trend of financial institutions leveraging India’s capabilities to optimize their processes.
This isn’t just about cost savings. Faster settlement cycles require operational agility, and India offers the potential to provide that, particularly for administrative functions.
Nomura’s Broader India Strategy
Nomura’s commitment to India extends beyond administrative tasks. The firm actively manages India Equity Strategies, aiming for high returns through bottom-up fundamental research and direct engagement with Indian companies. Vipul Mehta, Head of Investment for Asia Pacific ex Japan, leads this effort, bringing over 20 years of experience to the table.
The India Equity Strategy focuses on a concentrated portfolio of 25-35 high-conviction stocks, leveraging Nomura’s stock-picking expertise. The fund has received recognition, including a 4-star Morningstar rating and consistent performance accolades.
Global Asset Management Trends: A Snapshot
As of January 2026, Nomura Holdings manages a substantial 137.8 trillion Yen in assets globally, operating across 11 countries and regions with approximately 2,000 investment professionals. The firm’s investment management services encompass investment trusts, discretionary investment services, and private funds, catering to both individual and institutional clients.
Beyond traditional assets, Nomura similarly manages alternative investments like private equity, private debt, and real assets, demonstrating a diversified approach to asset management.
The Impact on Investment Professionals
The shift towards faster settlement cycles and increased outsourcing will likely impact investment professionals. There will be a growing demand for professionals skilled in operational efficiency, risk management, and technology. Adaptability and a willingness to embrace new technologies will be crucial for success in the evolving financial landscape.
Pro Tip: Consider upskilling in areas like automation, data analytics, and regulatory compliance to stay ahead of the curve.
Future Outlook: What’s Next?
The trend of outsourcing administrative functions to countries like India is expected to continue as the financial industry embraces faster settlement cycles and seeks cost optimization. We may witness further specialization of roles, with a greater emphasis on technology and data analysis.
the growth of alternative investments will likely drive demand for specialized expertise in areas like private equity and real estate.
FAQ
Q: What is T+1 settlement?
A: T+1 settlement means that trades are finalized within one business day after the trade date.
Q: Why are settlement cycles becoming faster?
A: Faster settlement cycles reduce risk and improve market efficiency.
Q: What are the benefits of outsourcing to India?
A: India offers a skilled workforce, competitive costs, and a growing financial infrastructure.
Q: What types of investments does Nomura Asset Management offer?
A: Nomura offers a wide range of investment products, including investment trusts, equities, bonds, and alternative investments.
Did you understand? Nomura’s India Equity Fund has been consistently ranked highly by Morningstar, demonstrating the firm’s expertise in Indian equities.
Desire to learn more about global investment trends? Explore Nomura Asset Management’s website for in-depth insights and resources.
