【10 min FY2019 2nd Quarter Earnings】
SPARX Group President Shūhei Abe will present the company‘s second quarter results for the fiscal year ending March 2020.
Looking at our second-quarter results, operating profit was up 9.7% year on year, rising from 1.8 billion yen last year to 2.0 billion yen this year.
Our base earnings, which represents our company's stable earnings foundation, was also up by 10% year on year, growing from 1.8 billion yen last year to 2.0 billion yen this year.
The biggest factor supporting this growth has been growth in our management fees.
Our assets under management, or AUM, for funds that earn a management fee higher than our average overall fee rate, such as our Japanese public investment trusts and the Mirai Creation funds, have experienced sustained growth since last fiscal year.
As a result, our management fees less commissions rose from 4.1 billion yen last year to 4.5 billion yen this year, contributing to the growth in both our base earnings and operating profit.
Today, we invest in Japanese and Asian equities, as well as renewable energy projects and venture startup companies.
These four businesses, or what we call our "Four Pillars", share a common investment philosophy.
With the growth of each pillar, we are building a diversified business portfolio that offers stable growth even if stock markets become more volatile.
Or, even if stock markets enter a protracted downturn, the negative impact on our business as a whole will be less compared to the past.
We are pleased that the firm's foundation to generate stable base earnings is continuing to become stronger.