Monex Group, Inc.
8698・Prime Market・Securities & Commodity Futures
Japan Segment
AM/WM Business achieved a dramatic improvement in earnings driven by rapid expansion in assets under management and success fees
| Period | Current | Previous | Change |
|---|---|---|---|
| Operating revenue | ¥7,735 million | ¥3,468 million | ↑ |
| Fee income | ¥7,725 million | ¥3,457 million | ↑ |
| Selling, general and administrative expenses | ¥4,595 million | ¥3,166 million | ↑ |
| Other revenue and expenses (net) | ¥2,139 million | -¥16 million | ↑ |
| Equity method investment income | ¥858 million | ¥0 million | ↑ |
| Segment profit (income before income taxes) | ¥6,135 million | ¥281 million | ↑ |
| MAM assets under management | ¥1,185.4 billion (up 71.2% year on year) | approx. ¥690.0 billion | ↑ |
| Westfield assets under management | US$24,694 million (¥3,729.1 billion converted to yen) | – | — |
Business Details
Comprised of Monex Asset Management Co., Ltd. (MAM), Westfield Capital Management Company, L.P. (Equity Method Affiliate), and Monex PB Co., Ltd. (MPB). Core businesses are robo-advisor, publicly offered fund, and institutional private fund management, U.S. growth equity asset management, and private banking services for high-net-worth clients; results are driven by assets under management and investment performance. Note that 3iQ was transferred to the Crypto Asset Business in the current period.
Recent Overview
Segment profit expanded roughly 22-fold year on year on a surge in MAM success fees and Westfield's transition to the equity method
In the current period, strong investment performance at the Monex Activist Fund managed by MAM led to a sharp increase in success fees and management fees, with fee income reaching ¥7,725 million (up 123.5% year on year). Westfield became an equity method affiliate in April 2025, and equity method investment income of ¥858 million and a fair value gain of ¥2,139 million on contingent consideration were recorded. Selling, general and administrative expenses increased to ¥4,595 million (up 45.1%) due to higher performance-linked bonuses and commissions paid, but this was outweighed by revenue growth, and segment profit expanded dramatically to ¥6,135 million (from ¥281 million in the prior period). Note that 3iQ was transferred to the Crypto Asset Business in the current period and excluded from this segment.
Key Products
Growth Drivers
- Substantial increase in success fees and management fees driven by strong investment performance at the Monex Activist Fund (fee income up 123.5% year on year)
- Continued increase in management fees from rapid expansion of MAM's assets under management (up 71.2% year on year)
- Commencement of equity method investment income recognition following Westfield Capital Management Company, L.P.'s transition to an equity method affiliate (April 2025)
- Recognition of a fair value gain on contingent consideration (earn-out) related to Westfield (¥2,139 million)
- Diversification of the customer base through private banking for high-net-worth clients (Monex PB)
Risks
- Risk that success fees at the Monex Activist Fund, which depend on investment performance, could decline substantially in adverse market conditions
- The fair value gain on Westfield's earn-out (¥2,139 million) is one-off and not expected to recur going forward
- Risk that Westfield's equity method investment income is subject to trends in the U.S. equity market and investment performance
- Risk that expenses such as performance-linked bonuses and commissions paid increase in line with growth in assets under management and revenue, pressuring earnings
- Foreign exchange risk: Westfield's AUM and earnings are denominated in U.S. dollars, so a stronger yen would negatively affect results after conversion to yen
- The transfer of 3iQ to the Crypto Asset Business has changed this segment's business composition, partially impairing continuity of historical comparisons
Last updated: June 26, 2026