Mizuho Financial Group’s asset‑management arm, Asset Management One, told investors it expects the pool of non‑Japan funds targeting the country to double by 2028. The projection follows a surge of overseas capital seeking exposure to Japan’s equity and bond markets, which the firm believes remain undervalued relative to global peers. This growth would push AUM above ¥10 trillion, a milestone since the early 2000s.

Foreign investors have been drawn by Japan’s stable regulatory environment and the recent easing of restrictions on foreign ownership of domestic securities. Asset Management One plans to channel the anticipated inflows into its actively managed Japanese equity funds, which have outperformed passive benchmarks over the past year. The firm anticipates fee‑based revenue could rise proportionally with asset growth, including outreach to European pension funds.

If the forecast materialises, Japan could see a sizable shift in capital flows, pressuring domestic fund managers to sharpen performance and potentially prompting broader market reforms. Mizuho Financial Group’s bullish stance signals confidence in Japan’s long‑term growth narrative and may encourage rival firms to expand their own overseas distribution channels. Investors will watch fee compression closely as higher volumes could offset lower margins.