Nakayama replaces Kunihiko Nakao and will report to Wayne Bowers, who is chief executive officer, asset management, for the Europe, Middle East and Africa (EMEA) and Asia-Pacific (APAC) regions.
He will lead and manage the continued growth and evolution of the asset management business in Japan, and will have overall responsibility for sales, product development, client service and operational teams in Tokyo, the firm said.
In 2011, Nakayama joined Northern Trust as executive managing director from Pictet Asset Management.
"Japan is an important institutional market and as one of the largest asset managers in Japan one of our priorities is to continue to expand our client base there," Bowers said.
"Having worked closely with our regional and international management teams for several months, and with a career in asset management to date stretching back over 25 years, Hidehiro brings to his new role valuable experience in the Japanese market combined with a deep understanding of our business and what clients want."
He has diversified experience of managing business management, investment strategy, client service and business development for institutional and personal clients investing in traditional and alternative asset classes.
As of 31 March 2012, Northern Trust had assets under custody of $4.6 trillion, and assets under investment management of $716.5bn.
