To our shareholders and investors
The Group’s assets under management (AUM) at the end of the previous fiscal year (March 31, 2023) decreased by 3.6% compared to the prior fiscal year (March 31, 2022). However, management fees increased slightly due to increased AUM for investment strategies with high management fee rates. Moreover, due to continued appropriate cost controls, Base earnings (Note 1), an indicator of our stable earning capacity, remained at a record high level. Additionally, we closely examined investment securities that had fulfilled their role as seed investments for new investment strategies. Terminating and redeeming some of these securities contributed to net profit increase, despite the fiscal year’s revenue drop. We have once again demonstrated SPARX’s investment capabilities and our robust structure that can maintain base earnings even when the stock market is down due to our diverse investment strategies, as I have explained before.
As we enter a new fiscal year (FY3/2024), the Group intends to select and train personnel to be successors and establish a new management structure by streamlining execution with a flatter organization to further expand our businesses and improve corporate value. Therefore, we began the shift to a new management generation by reducing the number of internal directors, with one president as the representative director, at the 34th ordinary general meeting of shareholders. We want to create a flat organization that is agile, aggressive, and responsive to change, with kindness and empathy toward our employees, and that practices the ARTS Spirit (Note 2) SPARX advocates. I intend to flatten the organizational hierarchy and work with all employees, including the executive officers, to nurture the next generation of talent and pass the baton on to them. I am ever proud of the wonderful people who work together at SPARX. My role is to make the stage grand and sturdy so they will succeed.
SPARX is a unique investment firm that deserves recognition from around the world. Our people and investment capabilities enable us to make solid, high-quality investments worldwide, strengthening our brand and promoting further growth.
This year, we will continue striving to realize our mission “to make the world wealthier, healthier, and happier” as SPARX becomes “the most trusted and respected investment company in the world.”
We humbly request your guidance and encouragement into the future.
SPARX Group Co. Ltd.
- (Note 1)Base earnings demonstrate whether a business has the earning capacity needed for a sustainable, stable foundation. We use the following formula to calculate base earnings:
Base earnings = Management fees (after deducting commissions) - Ordinary expenses
- (Note 2)ARTS Spirit
This is the Group’s Code of Conduct, coined from the first letters of the words “Arigato, Responsiveness, Thoroughness, and Sympathy.”
A: Always act with respect and sincere gratitude to colleagues and other persons
R: Always act with speed, reflecting our belief that alertness and agility are the best ways to deal with change
T: Investigate continuously, reflecting our belief that conscientious and meticulous effort will generate new knowledge
S: Treat our clients and colleagues with empathy, sincerity, and respect, which leads to harmony and mutual growth; embrace diversity with an open mind and create opportunities for free discussion