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Goldman Gaining Ground in Japan: What's Fueling the Momentum?

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Key Takeaways

  • Goldman is pursuing growth in Japan's OCIO market with a focus on asset management solutions.
  • GS shares are up 6.6% YTD and trade at a forward P/E of 13.28X, below the industry average of 13.81X.
  • BlackRock and Mercer are established OCIO players in Japan, intensifying competition for GS.

Goldman Sachs (GS - Free Report) is gaining momentum in Japan as part of its broader strategy to expand across Asia. The company’s outsourced Chief Investment Office (CIO) model has started to attract interest, signaling meaningful progress in a traditionally competitive market.

The momentum builds on years of groundwork in the region, with senior leadership reaffirming Japan as a strategic market under Goldman’s restructured asset and wealth management division. The company is differentiating itself by offering in-house investment products that span both traditional and alternative asset classes, providing more integrated solutions for clients.

The company’s growing traction reflects a shift in the Japanese financial landscape, where more investors are engaging with global advisory platforms. GS’s CIO approach emphasizes long-term portfolio planning, aiming to deliver more personalized strategies in response to changing investor needs.

As Goldman continues to scale its operations in the region, its ability to combine global investment capabilities with localized execution could help unlock further opportunities. The recent uptick in engagement marks a step forward in solidifying its wealth presence in Japan.

How Are Goldman’s Peers Positioned in Japan?

Not only Goldman Sachs, but also other global players like BlackRock (BLK - Free Report) and Mercer Inc., part of Marsh & McLennan (MMC - Free Report) , are also active in Japan’s OCIO space.

BlackRock has already landed key clients in the country, reinforcing its role as a major competitor in this segment. Since 1999, BlackRock has been expanding its footprint in Japan. It is now broadening its overseas investment offerings tailored to Japanese investors, particularly focusing on demand for global fixed income, private assets, and thematic strategies.

Another competitor, Mercer Inc., has a strong presence in Japan, too. The firm, under Marsh & McLennan, is collaborating with Mizuho Trust & Banking through its subsidiary, Asset Management One Co., Ltd.  The partnership, led by Mercer under Marsh & McLennan, focuses on delivering solutions that include optimized asset management across classes and addressing talent shortages with enhanced risk management. As Goldman looks to expand market share in Japan, it will face stiff competition from these established firms.

Goldman’s Price Performance, Valuation & Estimates

Over the last six months, GS shares have gained 6.6% year to date compared with the industry’s growth of 7.4%.

Six Month Price Performance

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From a valuation standpoint, Goldman trades at a forward price-to-earnings (P/E) ratio of 13.28X, below the industry’s average of 13.8X.

Price-to-Earnings F12M

Zacks Investment Research

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for GS’s 2025 and 2026 earnings implies year-over-year growth of 9.6% and 13.1%, respectively. The estimates for 2025 and 2026 have been unchanged over the past 30 days.

Estimates Revision Trend

Zacks Investment Research
Image Source: Zacks Investment Research

Goldman currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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