Natsumu Tsujino: Yes. Just one follow-up. Japan. For Q3, Japan FIG was basically flat. But in mid-December, there was some action in the business, but it didn’t leads to an increase in the FIG. So in Q4, how should we see Q4, please?
Takumi Kitamura: This is Kitamura. Thank you. I can’t really talk too much in detail about the January numbers, but the fixed income in January is strong. That’s all I can say.
Natsumu Tsujino: Understood. Thank you very much.
Operator: Let me introduce the next speaker, BOA Securities Sasaki-san. Please go ahead, Sasaki-san.
Futoshi Sasaki: Thank you. This is Sasaki of Bank of America. I have two questions. First of all, in the Tanshin summary, Page 13 segment profits. And at the bottom of segment income, you have the quarterly disclosure. And about the segment income, negative equity method investment numbers and realized gain was positive. And those numbers are approximately the same. In the press conference, you said there are two transactions. What is the accounting treatment applied here? That’s my first question.
Takumi Kitamura: Thank you for your question. This is Kitamura speaking. As you see, 20.7% versus approximately the same. So on a net basis, it’s JPY1.2 billion positive between unrealized and realized for policy holdings. On a regular basis, we monitor the significance or objective of policy holdings, and we’re trying to reduce our portfolio, and we’ve begun to do so since approximately 10 years ago. You know that against our Tier 1 capital, the level of our policy holding only accounts for 45%, which is significantly lower than other financial institutions and more recently, we have continued to sell off those hovering’s. And now I directly respond to your question, but in our Nomura’s segment information regarding shares that we have sold, the amount of difference between the investment we have done and the sales proceed is shown as realized gain.
So until the previous quarter, the accumulated amount, which had been booked as unrealized losses, that is reversed in one month. So that amount is therefore shown on two lines. And so what had been included in unrealized gain was realized and therefore, that had led to losses, unrealized losses. So that is how the accounting treatment works. And the same accounting treatment had been applied since the past, but there was a bit of a deformation because of the size of the amount.
Futoshi Sasaki: Thank you very much So there is a plus and minus in the policy holdings. Is that correct?
Takumi Kitamura: Yes, because we have sold those holdings, that’s how we book those numbers.
Futoshi Sasaki: Thank you very much. And the second question, ACM business has improved. I will deviate from the performance results, but YCC disclosure — do you think JGB is going to become very profitable there’s higher attention, but I think it’s only going to be security firms that will purchase. But do you think that environment will unfold so you can expect certain revenue or downgrading it can also be contemplated. But with rise of volatility, investment banking, can book revenues, is that too simplistic or to the extent possible, can you share with us your thinking?
Takumi Kitamura: This is Kitamura. Frankly speaking, I talked about physician management not being so successful. And immediately, having made that comment, I don’t want to reverse. But I don’t think the investor will certainly place weight on the reverse side. So it will not be a case where the position will continue to accumulate. So as we make coordination and adjustment in our position when there is client activity, of course, that would mean venue opportunity for ourselves. So if there is volatility, no doubt that would lead to revenue opportunity.
