Daiwa Securities Group Annual Report 2012 Corporate Summary Executive Messages Business Strategy Management Systems & CSR Financial Section Other Information 18 Furthermore, when the two operations were separated, the Retail and Wholesale businesses offered slightly  different products and services. Working together, they can now respond better to the diverse needs of middle- market customers. At present, the Daiwa Securities Group’s share of the middle market is quite limited, so there is  great potential for growth in this market segment. If we strengthen our sales structure and coverage of this  segment, the impact on earnings could be considerable. Now that the Retail and Wholesale businesses have been reunited, the “new” Daiwa Securities will be able to  enhance its services and coverage of these middle-market entities by assigning dedicated staff to address their  needs, offering them the products typical of our Wholesale securities business (structured bonds, derivatives, etc.)  and providing specialized knowledge and sales support. We are currently bolstering the sales support divisions to  ensure that middle-market customers receive “seamless” service that incorporates the merits of both Retail and  Wholesale operations. A.  Daiwa Securities Co. Ltd. will play a central role, serving as the platform for the fourth strategy listed in the  medium-term plan;  “strengthen ‘coverage of the middle market’.”  In the past our securities business was  segmented, with Daiwa Securities offering retail services to individual investors and unlisted companies, while  Daiwa Securities Capital Markets Co. Ltd. was responsible for serving institutional investors and listed corporations.  There were firewalls between the two corporations that prevented them from exchanging information on clients.  This made it difficult for the Group to cover the so-called “middle market,” consisting of foundations, incorporated  associations, incorporated schools, religious corporations and regional financial institutions. By building strong relationships with these clients and addressing a wide spectrum of needs, the Daiwa  Securities Group can not only handle issues of inheritance and business continuity, but also offer negotiable  securities, pension insurance and securities-backed loans, real estate and many other solutions. The third strategy is to  “enhance offerings for high net worth individuals.”  As Japan’s demographic shift  towards an elderly population continues, it is estimated that estates worth some ¥50 trillion per year will be  transferred via inheritance procedures, including many instances in which family businesses are passed on or  transferred. This creates an enormous opportunity for consulting services and business continuity support. The  Retail business is enhancing its solutions business for high net worth individuals, focusing on estate and business  continuity consulting in particular. We are also taking steps to boost the earnings potential of the real estate asset management business. In  March 2012, our listed REIT (real estate investment trust)—Daiwa Office Investment Corporation—became a  consolidated subsidiary of Daiwa Securities Group Inc. Planning and support for this REIT has been exemplary, and  it has become an important source of stable earnings for the Group. We have high expectations for the real estate  asset management business in the future, and intend to provide strong support for Daiwa Office Investment  Corporation, both in financing and locating new properties, in order to increase its total assets under management. Bond Open Fund,” “Short-Term Australian Bond Open” and “High Grade Oceania Bond Open Fund.” We will  continue to offer attractive products while strengthening our support for sales agents in an effort to increase our  share of the market even further. The Daiwa Securities Group’s share of the balance of  assets in mutual funds is at its highest level ever, reflecting the  strong reputation of the funds we offer for quality as well as  quantity. A survey of banks, conducted by R&I and entitled  “Sales agents’ ranking of best funds,” found that the top three  choices were all Daiwa Securities Group products: “Brazil  Group’s asset management business, hoping to attract a  dominant share of the assets flowing into investment trusts  through bank-related sales channels. Meanwhile, the Retail  business is strengthening its mutual fund sales capabilities,  placing top priority on increasing the balance of assets  under management. Q6  What role does the “new” Daiwa Securities play in the Group’s Medium-Term Management Plan?