Investec Asset Management is looking to increase its Japanese investment capabilities with the recent hire of Makoto Sakaguchi to lead its funds franchise.

Sakaguchi steps in from Citibank and is charged with helping the firm achieve its goal of growing its Japanese funds management business from $400 million to between $1.5 billion and $2 billion.

"Japan has a very big savings pool," said John Green, the asset manager's director of global business development. "It may be stagnant, but it's big."

At present, Investec manages around $70 billion worth of funds and intends to attract institutional mandates through Sakaguchi's leadership. The firm will also be looking at growing in the Japanese pensions market, Green said in a statement. However, it will not be opening offices in Japan.

Investec manages a money market fund for Shinsei Bank and a South Africa commodity fund for Nomura Holdings.