News Release
Nomura Individual Investor SurveyJuly 2017
21 July 2017
Global Research Division Nomura Securities Co., Ltd.
The Nomura Individual Investor Survey is a monthly survey conducted with the aim of better understanding investing activity by individuals and providing information on related trends.
- Survey overview
Nomura I-View Index falls for first time in three months, to 31.6
The Nomura Individual Investor Market View Index (Nomura I-View Index), based on respondents' three-month outlook for share prices and calculated by subtracting the percentage of responses for "fall" from that for "rise," was 31.6 in July 2017, falling m-m for the first time in three months. The Nikkei 225 reference level (10 July 2017 close) was 20,080.98, up 172.40 from the previous survey (12 June 2017 close of 19,980.58).
Investor focus ranking of "domestic politics" rises, that of "international affairs" falls
Respondents were asked to select the factor most likely to affect the stock market over the next three months. The response rate for "domestic politics" rose 9.8ppt m-m to 17.5%, while the response rate for "international affairs" fell 10.3ppt m-m to 45.7%.
Appeal of automobiles rises
On the outlook for sectors over the next three months or so, we calculate a diffusion index (DI) by subtracting the percentage of responses for "unappealing" from that for "appealing." The DI for the automobile sector rose 8.1pt m-m to 2.9, registering the first positive reading in six months. Meanwhile, the DI for the consumer goods sector fell 3.3pt m-m to -3.3 and that for the telecommunications sector fell 3.0pt m-m to 1.6.
Rise in number of investors expecting yen appreciation against US dollar
On the outlook for USD/JPY over the next three months, the combined percentage of respondents expecting the yen to appreciate against the US dollar was 66.9%, up 5.5ppt from the previous month. The response rate for "rise of about ¥5 against the dollar" rose 3.1ppt m-m to 45.7%.The response rate for "rise of about ¥10 against the dollar" rose 1.4ppt m-m to 17.3%, while that for "rise of more than ¥10 against the dollar" rose 1.0ppt to 3.9%.
The response rate for "fall of about ¥5 against the dollar" fell 3.7ppt m-m to 29.1%, while that for "fall of about ¥10 against the dollar" fell 1.8ppt to 2.7%.The response rate for "fall of more than ¥10 against the dollar" remained flat m-m at 1.3%.
Investment appeal declines for Japanese yen, rises for euro
On the outlook for different currencies over the next three months, we calculate a DI for each currency by subtracting the percentage of responses for "unappealing" from that for "appealing." This month, the DI for the Japanese yen fell by 6.1pt m-m to 25.6. The DI for the euro rose 6.2pt m-m to 0.9, the first positive reading since February 2010.
Appeal of cash & deposits among financial instruments declines
To give an indication of plans for holding financial instruments, we calculate DIs for each type of financial instrument by subtracting the percentage of respondents planning to cease holding the instrument or decrease their holdings from the percentage planning to hold the instrument for the first time or increase their holdings. The DI for cash & deposits fell 2.9pt m-m to 26.8, the lowest level since August 2016. Meanwhile, the DI for Japanese investment trusts rose 1.7pt m-m to 12.7.
Lower percentage of respondents expect prices to be higher one year out
When asked for their outlook for prices of regularly purchased goods and services one year out, the percentage of respondents selecting one of the "rise" responses decreased 5.0ppt m-m to 36.9%, while the percentage selecting one of the "fall" responses rose 2.8ppt m-m to 16.1%.The proportion of respondents selecting the "no change" response rose 2.2ppt m-m to 47.0%.
Exercise of voting rights at general shareholders' meetings and individual defined contribution pension plans (iDeCo)
For this month's spot questions, we first asked investors about the exercise of voting rights at general shareholders' meetings in June 2017. Some 55.1% of respondents said that they had exercised voting rights at general shareholders' meetings in June 2017, up 1.2ppt on the figure in the survey a year ago. The proportion of respondents who exercised voting rights with regard to all companies in which they owned shares was 39.1%, up 1.4ppt from last year's survey. The proportion that said they had exercised voting rights in some stocks they owned was 16.0%, down 0.2ppt on the survey a year earlier. We also asked investors who said they had exercised voting rights whether they had voted in favor of or against the resolutions (multiple responses allowed). The proportion of investors who said they voted in favor of all resolutions was 47.9%, down 12.0ppt from the survey a year earlier. Among those resolutions they had voted against, the response rate was highest for "dividends (use of surplus funds)," at 10.6%, followed by "director compensation/bonuses," at 10.4%. We also asked respondents who did not exercise their voting rights to indicate why (multiple responses allowed). The most common reason given was "because the impact of my vote is small" at 36.1%, up 5.7ppt from last year's survey. The next most common response was "because it is a hassle" at 31.7%, up 0.7ppt on the survey a year earlier.
This month we also asked investors a second spot question about individual defined contribution pension plans (iDeCo). We asked investors whether they had opened an iDeCo account, with the highest response, of 45.7%, for the option "I have not opened an iDeCo account and do not plan on opening one." The next highest response, at 30.7%, was for the option "I was not aware of iDeCo accounts." Next, we asked respondents who replied that they had opened an iDeCo account what financial instruments they held in their account. The highest response, at 25.6%, was for Japanese equities, followed by overseas equities at 18.0% and balanced funds at 17.3%. Of respondents who replied that "I have not opened an iDeCo account and do
not plan on opening one," the most common response for why they had not opened an account or planned to open one was "no particular reason" at 22.9%, followed by "not eligible" at 17.6%.
- Survey results
Nomura I-View Index falls for first time in three months, to 31.6
The Nomura Individual Investor Market View Index (Nomura I-View Index), based on respondents' three-month outlook for share prices and calculated by subtracting the percentage of responses for "fall" from that for "rise," was 31.6 in July 2017, falling m-m for the first time in three months. The Nikkei 225 reference level (10 July 2017 close) was 20,080.98, up 172.40 from the previous survey (12 June 2017 close of 19,980.58) (Figure 1).
Fig. 1: The Nomura I-View Index and reference level of Nikkei 225 at time of survey
(DI)
80
70
Nomura I-View Index (lhs) Past average for index (lhs)
Nikkei 225 at time of survey (rhs)
(¥)
22,000
20,000
60 18,000
50 16,000
40 14,000
30 12,000
20 10,000
10 8,000
0
06/4 07/1 07/10 08/7 09/4 10/1 10/10 11/8 12/5 13/2 13/11 14/8 15/5 16/2 16/11
6,000
(yy/m)
Note: (1) The Nomura I-View Index is based on data collected by this survey and expressed as a DI. The calculation method is as follows: ([(number of responses indicating expected rise in share prices in the next three months) minus (number of responses indicating expected fall in share prices in the next three months)] divided by number of respondents) x 100. The figure for Jan 2010 used here excludes those respondents who projected that the Nikkei 225 would be flat. (2) The Nomura I-View Index ranges from - 100 to +100. The closer to +100, the more bullish the outlook held by individual investors. The closer to -100, the more bearish the outlook held by individual investors.
The combined proportion of respondents expecting the Nikkei 225 to fall over the next three months was 34.2%, up 9.5ppt from 24.7% the previous month. The proportion of respondents expecting a "fall of more than 2,000 points" declined 0.4ppt m-m to 2.0%, while the proportion selecting a "fall of about 2,000 points" rose 2.3ppt m-m to 5.8% and the proportion selecting a "fall of about 1,000 points" rose 7.6ppt m-m to 26.4%.
The proportion of respondents expecting a "rise of about 1,000 points" rose 0.9ppt m-m to 50.4%, while the proportion selecting a "rise of about 2,000 points" was down 9.4ppt m-m at 11.1% and the proportion selecting a "rise of more than 2,000 points" was down 1.0ppt m-m at 4.3% (Figure 2).
Fig. 2: Outlook for Nikkei 225 over the next three months
Rise of more than 2,000 points
Rise of about 2,000 points
Rise of about 1,000 points
Fall of about 1,000 points
Fall of about 2,000 points
Jun 2017
Fall of more than 2,000 points
Jul 2017
0 10 20 30 40 50 60
(% of responses)
Note: Respondents were asked to share their outlook for the Nikkei 225 over the next three months based on the 10 July 2017 close of 20,080. Respondents could choose one answer from six possible responses ranging from a rise of more than 2,000 points to a fall of more than 2,000 points, with 1,000-point increments in between.
Investor focus ranking of "domestic politics" rises, that of "international affairs" falls
Respondents were asked to select the factor most likely to affect the stock market over the next three months. The response rate for "domestic politics" rose 9.8ppt m-m to 17.5%, while the response rate for "international affairs" fell 10.3ppt m-m to 45.7% (Figure 3).
Fig. 3: Impact of factors on the stock market
International affairs
Forex trends
Domestic politics
Domestic corporate earnings
Domestic interest rates
Market factors & psychological factors
Weather & natural disasters
Jun 2017
Jul 2017
0 10 20 30 40 50 60
(% of responses)
Note: Respondents were asked to choose one answer from a possible seven responses concerning factors likely to impact the stock market over the next three months or so.
Appeal of automobiles rises
On the outlook for sectors over the next three months or so, we calculate a diffusion index (DI) by subtracting the percentage of responses for "unappealing" from that for "appealing." The DI for the automobile sector rose 8.1pt m-m to 2.9, registering the first positive reading in six months. Meanwhile, the DI for the consumer goods sector fell 3.3pt m-m to -3.3 and that for the telecommunications sector fell 3.0pt m-m to 1.6 (Figures 4 and 5).
Fig. 4: Investment appeal by sector
Sector
DI
Breakdown of DI (% of responses)
(Ref) Previous DI
Appealing
Unappealing
Pharmaceuticals
8.7
13.9
5.2
5.6
Capital goods/other
4.6
9.5
4.9
3.8
Automobiles
2.9
14.9
12.0
-5.2
Telecommunications
1.6
6.5
4.9
4.6
Electrical equipment/precision equipment
0.9
12.4
11.5
2.9
Materials
-0.8
12.1
12.9
1.5
Consumer goods
-3.3
13.0
16.3
0.0
Transportation and utilities
-6.6
6.7
13.3
-3.7
Financials
-8.0
11.0
19.0
-9.5
Note: Respondents were given nine sectors and asked to choose one they viewed as an appealing investment target and one they viewed as unappealing. For each sector, we calculated a DI by subtracting the percentage of responses for "unappealing" from that for "appealing." The materials sector comprises mining, textiles, paper & pulp, chemicals, oil, ceramics, steel, nonferrous metals, and trading houses. The financial sector comprises banks, miscellaneous finance, securities, and insurance. The capital goods/other sector comprises construction, machinery, shipbuilding, transportation equipment, miscellaneous manufacturing, and real estate. The transportation and utilities sector comprises railroads & buses, trucking, shipping, airlines, warehousing, electric power, and gas. The consumer goods sector comprises marine products, food, retail, and services.
Fig. 5: DIs for investment appeal of selected sectors
(DI) 30
20
10
0
-10
-20
-30
12/1
12/4
12/7
12/10
13/1
13/4
13/7
13/10
14/1
14/4
14/7
14/10
15/1
15/4
15/7
15/10
16/1
16/4
16/7
16/10
17/1
17/4
17/7
-40
Automobiles Financials
Capital goods/other Pharmaceuticals
Electrical equipment/ precision equipment
Materials Telecommunications Transportation and utilities Consumer goods
(yy/m)
Most-watched stocks
Respondents were asked to name one stock that they would like to have in their portfolio, irrespective of short- or long-term investment horizon (including stocks actually held) or that they find appealing. We show the most popular responses in Figure 6.
Fig. 6: Name a stock with appeal (1,000 valid responses)
Code
Company
No. of respondents
7203
Toyota Motor
99
9984
Softbank Group
34
8267
Aeon
24
7201
Nissan Motor
18
9202
ANA Holdings
18
6758
Sony
17
7974
Nintendo
17
4502
Takeda Pharmaceutical
16
8411
Mizuho Financial Group
16
6501
Hitachi
14
2702
McDonald's Holdings (Japan)
10
2811
Kagome
10
6752
Panasonic
10
2327
NS Solutions
9
4661
Oriental Land
9
6753
Sharp
9
Code
Company
No. of respondents
7751
Canon
9
8306
Mitsubishi UFJ Financial Group
9
7270
Subaru
8
8001
Itochu
8
8058
Mitsubishi Corp
8
9437
NTT Docomo
8
6954
Fanuc
7
3197
Skylark
6
3382
Seven & i Holdings
6
5401
Nippon Steel & Sumitomo Metal
6
6502
Toshiba
6
8086
Nipro
6
8750
Dai-ichi Life Holdings
6
9022
Central Japan Railway
6
9433
KDDI
6
Note: Not included in valid responses were answers of "none" or clearly mistaken responses.
Rise in number of investors expecting yen appreciation against US dollar
On the outlook for USD/JPY over the next three months, the combined percentage of respondents expecting the yen to appreciate against the US dollar was 66.9%, up 5.5ppt from the previous month. The response rate for "rise of about ¥5 against the dollar" rose 3.1ppt m-m to 45.7%.The response rate for "rise of about ¥10 against the dollar" rose 1.4ppt m-m to 17.3%, while that for "rise of more than ¥10 against the dollar" rose 1.0ppt m-m to 3.9%.
The response rate for "fall of about ¥5 against the dollar" fell 3.7ppt m-m to 29.1%, while that for "fall of about ¥10 against the dollar" fell 1.8ppt m-m to 2.7%.The response rate for "fall of more than ¥10 against the dollar" remained flat m-m at 1.3% (Figure 7).
Fig. 7: Respondents' three-month outlook for USD/JPY
Fall of more than ¥10 against the dollar
Fall of about ¥10 against the dollar
Fall of about ¥5 against the dollar
Rise of about ¥5 against the dollar
Rise of about ¥10 against the dollar
Rise of more than ¥10 against the dollar
Jun 2017
Jul 2017
0 5 10 15 20 25 30 35 40 45 50
(% of responses)
Note: Respondents were asked to share their outlook for USD/JPY over the next three months, referencing a 10 July 2017 indicative rate of 114.12. They could choose one answer from six possible responses ranging from a rise of more than ¥10 against the dollar to a fall of more than ¥10 against the dollar, with ¥5 increments in between.
Investment appeal declines for Japanese yen, rises for euro
On the outlook for different currencies over the next three months, we calculate a DI for each currency by subtracting the percentage of responses for "unappealing" from that for "appealing." This month, the DI for the Japanese yen fell by 6.1pt m-m to 25.6.The DI for the euro rose 6.2pt m-m to 0.9, the first positive reading since February 2010 (Figures 8 and 9).
Fig. 8: Investment appeal by currency
Currency
DI
Breakdown of DI (% of responses)
(Ref) Previous DI
Appealing
Unappealing
Japanese yen
25.6
34.1
8.5
31.7
US dollar
23.3
31.6
8.3
22.3
Australian dollar
13.6
15.6
2.0
12.5
Euro
0.9
9.4
8.5
-5.3
Canadian dollar
0.6
1.5
0.9
1.7
Pound sterling
-9.5
2.0
11.5
-15.2
Brazilian real
-16.4
2.4
18.8
-13.1
Chinese yuan
-39.5
1.5
41.0
-35.4
Note: Respondents were given nine possible responses, consisting of the above eight currencies and "other," and asked to choose one they viewed as an appealing investment target and one they viewed as unappealing. Those selecting "other" were asked to specify a currency.
Fig. 9: DIs for investment appeal of selected currencies
(DI) 60
40
20
0
-20
-40
-60
10/1
10/4
10/7
10/10
11/1
11/4
11/7
11/10
12/1
12/4
12/7
12/10
13/1
13/4
13/7
13/10
14/1
14/4
14/7
14/10
15/1
15/4
15/7
15/10
16/1
16/4
16/7
16/10
17/1
17/4
17/7
-80
(yy/m)
USD JPY AUD CAD GBP EUR BRL CNY
Appeal of cash & deposits among financial instruments declines
To give an indication of plans for holding financial instruments, we calculate DIs for each type of financial instrument by subtracting the percentage of respondents planning to cease holding the instrument or decrease their holdings from the percentage planning to hold the instrument for the first time or increase their holdings. The DI for cash & deposits fell 2.9pt m-m to 26.8, the lowest level since August 2016. Meanwhile, the DI for Japanese investment trusts rose 1.7pt m-m to 12.7 (Figures 10 and 11).
Fig. 10: Financial instruments for which investors are planning either to increase or to decrease their holdings
Financial instrument
DI
Breakdown of DI (% of responses)
(Ref) Previous DI
Plan to increase
Plan to decrease
Japanese equities
40.4
50.7
10.3
41.1
Cash & deposits
26.8
32.7
5.9
29.7
Japanese investment trusts
12.7
19.1
6.4
11.0
Foreign equities
9.3
10.2
0.9
10.3
Gold
6.8
7.4
0.6
8.6
Foreign investment trusts
5.5
7.2
1.7
4.5
Japanese bonds
5.0
6.8
1.8
4.2
Foreign bonds
3.2
4.5
1.3
2.2
Hybrid securities
1.2
1.5
0.3
1.2
Other
0.6
0.8
0.2
1.1
None
-45.0
31.6
76.6
-46.5
Note: Respondents were given a list of 11 responses and asked to choose those financial instruments for which they planned to increase their holdings and those for which they planned to decrease their holdings (multiple responses were allowed). Plan to increase" refers to financial instruments that investors plan to hold for the first time or for which they plan to increase their holdings, while "plan to decrease" refers to instruments that investors plan to cease holding or for which they plan to decrease their holdings. Hybrid securities and gold were added to the list of choices from the February 2012 survey. Since the April 2013 survey, we have divided the former category of "Securities issued overseas" into foreign equities, foreign investment trusts, and foreign bonds.
Fig. 11: DIs for financial instruments in which investors are planning either to increase or to decrease their holdings
(DI)
50
45
40 Japanese equities
35
Cash & deposits
30
overseas
20
15 investment trusts
10 Japanese bonds
10/1
10/4
10/7
10/10
11/1
11/4
11/7
11/10
12/1
12/4
12/7
12/10
13/1
13/4
13/7
13/10
14/1
14/4
14/7
14/10
15/1
15/4
15/7
15/10
16/1
16/4
16/7
16/10
17/1
17/4
17/7
Note: "Securities issued overseas" is the total for foreign equities, foreign investment trusts, and foreign bonds.
25 Securities issued
Japanese
5
0
(yy/m)
Lower percentage of respondents expect prices to be higher one year out
When asked for their outlook for prices of regularly purchased goods and services one year out, the percentage of respondents selecting one of the "rise" responses decreased 5.0ppt m-m to 36.9%, while the percentage selecting one of the "fall" responses rose 2.8ppt to 16.1%.The proportion of respondents selecting the "no change" response rose 2.2ppt m-m to 47.0% (Figure 12).
Fig. 12: Outlook for prices one year out
Choices
% of responses
(Ref) Previous % of responses
1
Fall of 5% or more
1.9
2.2
2
Fall of 2% up to 5%
5.1
3.3
3
Fall of less than 2%
9.1
7.8
4
No change (0%)
47.0
44.8
5
Rise of less than 2%
27.3
32.3
6
Rise of 2% up to 5%
8.4
8.1
7
Rise of 5% or more
1.2
1.5
Total
100
100
Note: Respondents were asked to select one response to the question: "How do you expect prices of regularly purchased goods and services to differ from current levels one year out?"
Exercise of voting rights at general shareholders' meetings and individual defined contribution pension plans (iDeCo)
For this month's spot questions, we first asked investors about the exercise of voting rights at general shareholders' meetings in June 2017. Some 55.1% of respondents said that they had exercised voting rights at general shareholders' meetings in June 2017, up 1.2ppt on the figure in the survey a year ago. The proportion of respondents who exercised voting rights with regard to all companies in which they owned shares was 39.1%, up 1.4ppt from last year's survey. The proportion that said they had exercised voting rights in some stocks they owned was 16.0%, down 0.2ppt on the survey a year earlier.
Fig. 13: Exercise of voting rights at general shareholders' meetings
Choices
% of responses
2016 survey
% of responses
1
Attended general meeting and exercised rights for all stocks owned
2.5
2.9
2
Exercised rights for all stocks owned in writing (by post)
23.3
22.8
3
Exercised rights for all stocks owned electronically (by internet, mobile phone, smartphone)
10.2
8.3
4
Exercised rights for all stocks owned via a combination of methods listed in choices 1-3 above
3.1
3.7
5
Attended general meeting and exercised rights for some stocks owned
4.8
4.6
6
Exercised rights for some stocks owned in writing (by post)
7.8
7.5
7
Exercised rights for some stocks owned electronically (by internet, mobile phone, smartphone)
1.8
2.9
8
Exercised rights for some stocks owned via a combination of methods listed in choices 5-7 above
1.6
1.2
9
Did not exercise rights for any stocks owned
36.9
36.3
10
Held no stocks in subject companies
8.0
9.8
Total
100.0
100.0
Note: We asked investors to select one of the above 10 options with regard to the exercise of voting rights at general shareholders' meetings for March year-end companies held in June 2017.
We also asked investors who said they had exercised voting rights whether they had voted in favor of or against the resolutions (multiple responses allowed). The proportion of investors who said they voted in favor of all resolutions was 47.9%, down 12.0ppt from the survey a year earlier. Among those resolutions they had voted against, the response rate was highest for "dividends (use of surplus funds)," at 10.6%, followed by "director compensation/bonuses," at 10.4% (Figure 14).
Fig. 14: Voting in favor of/against company proposals
Choices
2017 survey
2016 survey
No. of responses
%
No. of responses
%
1
Voted in favor of all resolutions
354
47.9
385
59.9
2
Dividends (use of surplus funds)
78
10.6
48
7.5
3
Director compensation/bonuses
77
10.4
58
9.0
4
Retirement bonuses for directors
67
9.1
53
8.2
5
Grant of stock options
38
5.1
22
3.4
6
Selection of directors/auditors (including auditors at companies with an audit board)
60
8.1
39
6.1
7
Introduction of takeover defense measures
15
2.0
11
1.7
8
Change in the number of directors (reduction, establishment of upper limit)
26
3.5
12
1.9
9
Change in the maximum number of issuable shares
8
1.1
3
0.5
10
Share buybacks
16
2.2
12
1.9
No. of responses
739
100.0
643
100.0
Note: We asked investors who selected responses 1-8 in Figure 13 which company resolutions they had voted against from the list of 10 shown in Figure 14 (multiple responses allowed).
We also asked respondents who did not exercise their voting rights to indicate why (multiple responses allowed). The most common reason given was "because the impact of my vote is small" at 36.1%, up 5.7ppt from last year's survey. The next most common response was "because it is a hassle" at 31.7%, up 0.7ppt on the survey a year earlier (Figure 15).
Fig. 15: Reasons for not exercising voting rights
Choices
2017 survey
2016 survey
No. of responses
%
No. of responses
%
1
Because it is a hassle
159
31.7
157
31.0
2
Because the impact of my vote is small
181
36.1
154
30.4
3
None of the resolutions required me to express an opinion
42
8.4
44
8.7
4
I did not have the time to study the resolutions
21
4.2
31
6.1
5
I could not attend the general meeting or I forgot to mail the voting card
14
2.8
14
2.8
6
My investment style is mainly short term or seeking capital gains, so I do not view exercising my voting rights as important
15
3.0
13
2.6
7
I have no interest in exercising voting rights
42
8.4
53
10.5
8
I did not understand the resolutions well
19
3.8
26
5.1
9
Other
9
1.8
15
3.0
Total
502
100.0
507
100.0
Note: We asked investors who selected option 9 in Figure 13 to select one or more responses in Figure 15 indicating why they had not exercised their voting rights.
This month we also asked investors a second spot question about individual defined contribution pension plans (iDeCo). We asked investors whether they had opened an iDeCo account, with the highest response, of 45.7%, for the option "I have not opened an iDeCo account and do not plan on opening one." The next highest response, at 30.7%, was "I was not aware of iDeCo accounts" (Figure 16).
Fig. 16: Have you opened an iDeCo account?
Choices
No. of responses
%
1
I have opened an iDeCo account
62
6.2
2
I have not opened an iDeCo account, but I am interested in opening one
174
17.4
3
I have not opened an iDeCo account and do not plan on opening one
457
45.7
4
I was not aware of iDeCo accounts
307
30.7
Total
1,000
100.0
Note: Respondents were asked to select one of four responses to the question: "Please tell us whether you have opened an iDeCo account after the scope of eligibility was widened in January 2017."
Next, we asked respondents who replied that they had opened an iDeCo account what financial instruments they held in their account. The most common response, at 25.6%, was Japanese equities, followed by overseas equities at 18.0% and balanced funds at 17.3% (Figure 17).
Fig. 17: Financial instruments held by investors in iDeCo account
Choices
No. of responses
%
1
Japanese equities
34
25.6
2
Japanese bonds
15
11.3
3
Overseas equities
24
18.0
4
Overseas bonds
15
11.3
5
Real estate
5
3.8
6
Balanced funds
23
17.3
7
Principal-guaranteed fixed-term deposit
16
12.0
8
Other
1
0.8
Total
133
100.0
Note: We asked investors who selected option 1 in Figure 16 what financial instruments they held in their account (multiple responses allowed).
Of respondents who replied that "I have not opened an iDeCo account and do not plan on opening one," the most common reason given for why they had not opened an account or planed to open one was "no particular reason" at 22.9%, followed by "not eligible" at 17.6% (Figure 18).
Fig. 18: Reasons for not opening an iDeCo account
Choices
No. of responses
%
1
Enrolled in company defined contribution pension scheme
47
8.4
2
Risk of capital loss
46
8.2
3
Hard to manage to investments by yourself
29
5.2
4
Incurs management fees
31
5.6
5
Cannot start withdrawing until I'm 60
32
5.7
6
Enrolled in other pension products (such as personal pension insurance)
41
7.3
7
Tax savings are not that appealing
30
5.4
8
Don't fully understand how they work
45
8.1
9
Not eligible
98
17.6
10
Other
31
5.6
11
No particular reason
128
22.9
Total
558
100.0
Note: We asked investors who selected option 3 in Figure 16 why they had not opened an account (multiple responses allowed).
-
Nomura Individual Investor Survey
With the aim of better understanding investing activity by individuals and providing information on those trends, Nomura Securities conducts a monthly survey-the Nomura Individual Investor Survey. The results of the survey have been published monthly since April 2006.
Survey method: Questionnaire conducted electronically using the internet monitor questionnaire service administered by Nomura Investor Relations Co., Ltd.
Survey target: Survey sent to 3,000 individual investors randomly selected from the approximately 24,000 with equity investment experience participating in Nomura Investor Relations' internet monitor questionnaire service.
Number of responses: 1,000 (survey closed when 1,000 responses received).
Survey period: Survey distributed on 10 July, with deadline for responses on 11 July 2017.
Survey content: Questions included each month are (1) share price outlook, (2) factors expected to impact the stock market,
(3) attractive sectors and stocks, (4) USD/JPY outlook and attractive currencies, (5) financial instruments for which investors plan to change their holdings, and (6) inflation outlook (since July 2013). Respondents are also asked spot questions each month and queried about their personal profiles.
- Nomura Individual Investor Survey (July 2017) respondents
Gender: Male (83.1%), female (16.9%)
Age: Under 30 (0.8%), 30-39 (7.3%), 40-49 (22.0%), 50-59 (30.0%), 60 and above (39.9%)
Occupation: Self-employed/fisheries, agriculture, forestry (7.7%), professional (physician/medical professional, lawyer, etc) (2.9%), company management/corporate officer (4.3%), company employee/public servant (44.1%), student (0.1%), full-time homemaker (8.8%), part-time worker/casual worker/job-hopper (5.1%), unemployed/pensioner (25.3%), other (1.7%)
Region: Kanto (50.6%), Kinki (17.6%), Tokai/Koshinetsu/Hokuriku (17.3%), Hokkaido/Tohoku (4.7%), Chugoku/Shikoku/Kyushu
(9.8%)
Financial assets held: Less than ¥1,000,000 (5.9%), ¥1,000,000-¥2,999,999 (7.8%), ¥3,000,000-¥4,999,999 (9.0%), ¥5,000,000-
¥9,999,999 (15.8%), ¥10,000,000-¥29,999,999 (30.3%), ¥30,000,000-¥49,999,999 (16.0%), ¥50,000,000 or more (15.2%)
Value of domestic stocks held: Less than ¥500,000 (9.2%), ¥500,000-¥999,999 (12.0%), ¥1,000,000-¥2,999,999 (22.8%),
¥3,000,000-¥4,999,999 (14.3%), ¥5,000,000-¥9,999,999 (17.0%), ¥10,000,000-¥29,999,999 (17.1%), ¥30,000,000 or more
(7.6%)
Investment experience: Less than three years (2.6%), three years to less than five years (6.6%), five years to less than 10 years (21.2%), 10 years to less than 20 years (32.2%), 20 years or more (37.4%)
Investment plan for domestic stocks: Mainly for long-term holding (46.9%), pursuit of gains from short-term appreciation (11.5%), pursuit of dividends and shareholder perks (28.7%), no particular plan (12.9%)
Notice
The next Nomura Individual Investor Survey (August 2017) is scheduled for release on Friday, 18 August 2017.
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Distribution of ratings (Nomura Group)
The distribution of all ratings published by Nomura Group Global Equity Research is as follows:
50% have been assigned a Buy rating which, for purposes of mandatory disclosures, are classified as a Buy rating; 37% of companies with this rating are investment banking clients of the Nomura Group*. 0% of companies (which are admitted to trading on a regulated market in the EEA) with this rating were supplied material services** by the Nomura Group.
42% have been assigned a Neutral rating which, for purposes of mandatory disclosures, is classified as a Hold rating; 51% of companies with this rating are investment banking clients of the Nomura Group*. 0% of companies (which are admitted to trading on a regulated market in the EEA) with this rating were supplied material services by the Nomura Group
8% have been assigned a Reduce rating which, for purposes of mandatory disclosures, are classified as a Sell rating; 8% of companies with this rating are investment banking clients of the Nomura Group*. 0% of companies (which are admitted to trading on a regulated market in the EEA) with this rating were supplied material services by the Nomura Group.
As at 30 June 2017.
*The Nomura Group as defined in the Disclaimer section at the end of this report.
** As defined by the EU Market Abuse Regulation
Distribution of ratings (Instinet, LLC)
The distribution of all ratings published by Instinet, LLC Equity Research is as follows:
54% have been assigned a Buy rating which, for purposes of mandatory disclosures, are classified as a Buy rating; Instinet LLC has provided investment banking services to 0% of companies with this rating within the previous 12 months.
41% have been assigned a Neutral rating which, for purposes of mandatory disclosures, is classified as a Hold rating; Instinet LLC has provided investment banking services to 0% of companies with this rating within the previous 12 months.
5% have been assigned a Reduce rating which, for purposes of mandatory disclosures, are classified as a Sell rating; Instinet LLC has provided investment banking services to 0% of companies with this rating within the previous 12 months.
Definition of Nomura Group's equity research rating system and sectors
The rating system is a relative system, indicating expected performance against a specific benchmark identified for each individual stock, subject to limited management discretion. An analyst's target price is an assessment of the current intrinsic fair value of the stock based on an appropriate valuation methodology determined by the analyst. Valuation methodologies include, but are not limited to, discounted cash flow analysis, expected return on equity and multiple analysis. Analysts may also indicate expected absolute upside/downside relative to the stated target price, defined as (target price - current price)/current price.
STOCKS
A rating of 'Buy', indicates that the analyst expects the stock to outperform the Benchmark over the next 12 months. A rating of 'Neutral', indicates that the analyst expects the stock to perform in line with the Benchmark over the next 12 months. A rating of 'Reduce', indicates that the analyst expects the stock to underperform the Benchmark over the next 12 months. A rating of 'Suspended', indicates that the rating, target price and estimates have been suspended temporarily to comply with applicable regulations and/or firm policies. Securities and/or companies that are labelled as 'Not rated' or shown as 'No rating' are not in regular research coverage. Investors should not expect continuing or additional information from Nomura relating to such securities and/or companies. Benchmarks are as follows: United States/Europe/Asia ex- Japan: please see valuation methodologies for explanations of relevant benchmarks for stocks, which can be accessed at: http://go.nomuranow.com/research/globalresearchportal/pages/disclosures/disclosures.aspx; Global Emerging Markets (ex-Asia): MSCI Emerging Markets ex-Asia, unless otherwise stated in the valuation methodology; Japan: Russell/Nomura Large Cap.
SECTORS
A 'Bullish' stance, indicates that the analyst expects the sector to outperform the Benchmark during the next 12 months. A 'Neutral' stance, indicates that the analyst expects the sector to perform in line with the Benchmark during the next 12 months. A 'Bearish' stance, indicates that the analyst expects the sector to underperform the Benchmark during the next 12 months. Sectors that are labelled as 'Not rated' or shown as 'N/A' are not assigned ratings. Benchmarks are as follows: United States: S&P 500; Europe: Dow Jones STOXX 600; Global Emerging Markets (ex-Asia): MSCI Emerging Markets ex-Asia. Japan/Asia ex-Japan: Sector ratings are not assigned.
Target Price
A Target Price, if discussed, indicates the analyst's forecast for the share price with a 12-month time horizon, reflecting in part the analyst's estimates for the company's earnings. The achievement of any target price may be impeded by general market and macroeconomic trends, and by other risks related to the company or the market, and may not occur if the company's earnings differ from estimates.
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Investment trusts invest mainly in securities such as Japanese and foreign equities and bonds, whose prices fluctuate. Investment trust unit prices fluctuate owing to price fluctuations in the underlying assets and to foreign exchange rate fluctuations. As such, investment trusts carry the risk of losses. Fees and risks vary by investment trust. Maximum applicable fees are subject to change; please thoroughly read the written materials provided, such as prospectuses or documents delivered before making a contract.
In interest rate swap transactions and USD/JPY basis swap transactions ("interest rate swap transactions, etc."), only the agreed transaction payments shall be made on the settlement dates. Some interest rate swap transactions, etc. may require pledging of margin collateral. In some of these cases, transaction payments may exceed the amount of collateral. There shall be no advance notification of required collateral value or collateral ratios as they vary depending on the transaction. Interest rate swap transactions, etc. carry the risk of losses owing to fluctuations in market prices in the interest rate, currency and other markets, as well as reference indices. Losses incurred as such may exceed the value of margin collateral, in which case margin calls may be triggered. In the event that both parties agree to enter a replacement (or termination) transaction, the interest rates received (paid) under the new arrangement may differ from those in the original arrangement, even if terms other than the interest rates are identical to those in the original transaction. Risks vary by transaction. Please thoroughly read the written materials provided, such as documents delivered before making a contract and disclosure statements.
In OTC transactions of credit default swaps (CDS), no sales commission will be charged. When entering into CDS transactions, the protection buyer will be required to pledge or entrust an agreed amount of margin collateral. In some of these cases, the transaction payments may exceed the amount of margin collateral. There shall be no advance notification of required collateral value or collateral ratios as they vary depending on the financial position of the protection buyer. CDS transactions carry the risk of losses owing to changes in the credit position of some or all of the referenced entities, and/or fluctuations of the interest rate market. The amount the protection buyer receives in the event that the CDS is triggered by a credit event may undercut the total amount of premiums that he/she has paid in the course of the transaction. Similarly, the amount the protection seller pays in the event of a credit event may exceed the total amount of premiums that he/she has received in the transaction. All other conditions being equal, the amount of premiums that the protection buyer pays and that received by the protection seller shall differ. In principle, CDS transactions will be limited to financial instruments business operators and qualified institutional investors.
No account fee will be charged for marketable securities or monies deposited. Transfers of equities to another securities company via the Japan Securities Depository Center are subject to a transfer fee of up to ¥10,800 per issue transferred depending on volume.
Nomura Securities Co., Ltd.
Financial instruments firm registered with the Kanto Local Finance Bureau (registration No. 142)
Member associations: Japan Securities Dealers Association; Japan Investment Advisers Association; The Financial Futures Association of Japan; and Type II Financial Instruments Firms Association.
The Nomura Group manages conflicts with respect to the production of research through its compliance policies and procedures (including, but not limited to, Conflicts of Interest, Chinese Wall and Confidentiality policies) as well as through the maintenance of Chinese walls and employee training.
Additional information regarding the methodologies or models used in the production of any investment recommendations contained within this document is available upon request by contacting the Research Analysts listed on the front page. Disclosures information is available upon request and disclosure information is available at the Nomura Disclosure web page: http://go.nomuranow.com/research/globalresearchportal/pages/disclosures/disclosures.aspx
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Nomura Holdings Inc. published this content on 21 July 2017 and is solely responsible for the information contained herein.
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