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## Asset Management Division 

There are four main subsidiaries that comprise the Daiwa Securities Group’s Asset Management business. Daiwa Asset Management Co. Ltd. focuses on the establishment and management of investment trusts mainly for individual investors. Daiwa SB Investments Ltd. (an equity method affiliate) has an established history of results and reliability in providing invest- ment advisory services to pension funds and other institutional investors. Daiwa Real Estate Asset Management Co. Ltd. manages real estate assets, and Daiwa Office Investment Corp., the J-REIT that Daiwa Real Estate Asset Management Co. Ltd manages, became a consolidated subsidiary of the Group in March 2012. 

A deteriorating market environment, including the deepening debt crisis in Europe, battered the entire asset management industry. Mutual funds lost ¥3.0 trillion in value across the industry as a whole, closing FY2011 with a net asset value of ¥51.2 trillion. Though there was a net outflow of investment in the latter half of the year, this was offset by the inflow of new investment earlier in the period. Over the full fiscal year there was a net inflow of ¥2.0 trillion. 

Daiwa Asset Management led the industry in the net inflow of assets to mutual funds, during FY2011, with ¥667.2 billion. The balance of assets under management closed the year at ¥6,624.9 billion, increasing the company’s market share by 1.1 percentage points to 12.9%. Daiwa Asset Management also had the two top-ranked funds in the industry in terms of net asset inflow. The “Daiwa C&S Beikoku REIT Fund” led the industry with an inflow of ¥507.2 billion and the “Daiwa C&S US REIT Open B course (Currency Unhedged)” was second, with ¥470.1 billion. Daiwa Securities has donated its sales-commission portion of the man- agement fees from the “Daiwa Japan Supporter Vol.3-Phoenix Japan” launched in May 2011 to the Japan NPO Center’s Japan 

## Balance of Assets Under Management at the Two Asset Management Subsidiaries, and Market Share 

(¥ trillion) 

<img src='content_image/229852.jpg'>

Earthquake Local NPO Support Fund, which assists with r econ- struction in the aftermath of the East Japan Earthquake. The Group intends to continue making contributions each fiscal period, out of the income from this fund, to support the rebuilding effort. Daiwa Asset Management won several recognitions during the period, including the Morningstar Award “Fund of the Year 2011” and the R&I Fund Award 2012. It was also selected as the top-ranked fund manager in the Sixth Annual Fund Manager Brand Survey con- ducted by The Japan Financial News Co., Ltd.’s “Nikkin Investment Trust News,” demonstrating the company’s strong reputation among the banks that distribute mutual funds. 

Daiwa SB Investments recorded a net inflow of ¥480.3 billion to its mutual funds during FY2011. At the end of the fiscal year, the balance of assets under management of mutual funds stood at ¥2,547.2 billion, increasing its share of the market by 0.6 percentage points to 5.0%. The company’s “Short-Term Australian Bond Open” ranked second in the industry for the total balance of assets under management, and this fund continued to expand, with a net inflow of ¥398.2 billion in FY2011. The “Emerging Bond Fund With Currency Selection” also recorded a strong net inflow of ¥327.3 billion. In the 

## Sales of Mutual Funds Through Bank-related Sales Channels 

(¥ billion) 

<img src='content_image/229853.jpg'>

