SPARX:Consolidated Financial Results for FY2020 (Apr. 2020 - Mar. 2021)
SPARX Group’s Founder and President Shuhei Abe Fiscal Year ended March 2021 Review and Outlook
Although there is now hope that the pandemic will come to an end as vaccinations progress, there is still no real end in sight.
I would like to express my heartfelt sympathy to all those suffering from COVID-19.
I also wish to extend my deepest gratitude to all the medical professionals who work tirelessly, day in and day out. Many thanks for all that you do for us and for the world.
Our earnings' upward trend continued from the third quarter and into the fourth quarter. Despite COVID-19, our earnings' momentum was maintained and in fact exceeded our expectations for the fiscal year.
During the pandemic, our personnel related expenses increased, but travel and other expenses were significantly reduced, therefore our total expenses were about in-line with the previous fiscal year.
Furthermore, in this fiscal year, we were able to earn performance fees of about 1.6 billion yen from our public equities strategy and 1.5 billion yen from our renewable energy strategy, which significantly contributed to our earnings growth.
Our stable management fee has contributed to the growth of our base earnings. The hybrid model that we have long promoted seems to have significantly contributed to our earnings growth.
This quarter, our assets under management, or AUM, increased in our private equities strategy, including Renewable Energy, the Space Frontier Fund, and the Monozukuri Mirai Fund.
At the same time, although AUM for our Japanese mutual funds and other public equities funds increased due to their solid performance, we have struggled to increase subscriptions.
In April, R&I, a prominent funds rating organization recognized SPARX and its public equities funds.
SPARX received first prizes for its 20-year track record in the Japanese mid- and small-caps equity fund category, and for its 10-year track record in the Japanese equity core fund category.
These awards support our claim that we have been able to achieve and maintain our top investment performance for a very long time.
We have also been recognized for our performance in Korean equities, which led to a significant investment from a major public institution and considerably boosted our AUM.
This performance is the direct result of the hard efforts and work of our group of outstanding investment professionals in Tokyo and our other offices in Hong Kong and Korea.
I want to increase my efforts to inform both Japanese and international investors of our outstanding long-term performance and our outstanding investment team.