I came across an interesting article—actually covered by several media outlets—about South Korea.

South Korea’s birth rate is rebounding. It increased 15% year‑on‑year in Q1/26, and 18% in April, with both figures marking the highest growth rates since statistics began in 1981. These high birth rates are helped by delayed post-COVID marriages, more births among women in their 30s, bigger child-rearing subsidies, and a strong stock market (thanks to Samsung and SK Hynix) that has boosted household wealth. The surge is also lifting financial stocks.

On the other hand, Japan—despite heavy spending on pro-natal policies—keeps seeing record-low births. In 2025, the number of births fell to 670,000, marking the tenth consecutive year of a record low. A strategist at a European asset‑management firm notes that, given the rising burdens of healthcare, pensions, and eldercare due to population aging, policies that strengthen the importance of asset management would be more effective in raising the birth rate.

With the launch in the next January of the “Child Support NISA” (a tax‑exempt small‑investment program for children under 18), the government is increasingly serious in helping Japanese citizens in building their financial assets.

Who stands to benefit most from rising investment interest among Japanese retail investors?

While most securities firms and asset managers should see some uplift, SPARX (MC: Y94 Bn appears particularly well positioned. Its differentiated product lineup, strong brands for long-term retail investors, and proven track record in Japan-focused and thematic active strategies provide a competitive advantage as retail participation expands.

Rather than competing on scale, SPARX distinguishes itself through its independence, broad investment capabilities, and high-conviction active management. Its business is built on a disciplined bottom-up research process and a diversified platform spanning Japan equities, long-short strategies, renewable energy, real assets, and private equity.

This broader earnings mix and investment flexibility set it apart from many bank-affiliated asset managers that rely more heavily on mainstream fund distribution, making SPARX more akin to a specialized investment boutique than a conventional mass-market asset manager.

This note outlines SparX’s business model in more detail. Paid subscribers on Substack receive full access to my institutional‑level research note. The pricing is intentionally set to broaden access, and I encourage you to join as a paid subscriber.

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