Swiss-based financial services giant UBS has signed a strategic wealth management partnership with banking group Sumitomo Mitsui Trust Holdings (Sumi Trust Holdings) to form a Japanese joint venture (JV).
Around 51% of the JV will be owned by UBS and the other 49% will be owned by Sumi Trust Holdings.
It will offer products, investment advice and services beyond what either UBS Global Wealth Management or Sumi Trust Holdings is currently able to deliver on its own.
The JV will open UBS’s current wealth management customer base to a full range of Japanese real estate and trust services,
Sumi Trust Holdings’ clients will be able to access UBS’s wealth management services, including securities trading, research, and advisory capabilities.
Sergio Ermotti, UBS Group chief executive, said: “UBS has over 50 years of history in Japan, and this landmark transaction with a top-level local partner will ideally complement our service and product offering to the benefit of clients.
“The joint venture is a blueprint for how complementary partnerships can unlock value for clients as well as shareholders.”
Japanese expansion
The firms said that “no wealth management firm today provides this range of offerings to Japanese clients under a single roof”.
UBS expects the joint venture to fill this gap by offering expanded products and services to clients from both franchises.
This is the “Japanese market’s first-ever wealth management partnership developed between an international financial group and a Japanese trust bank”, according to UBS.
Subject to receiving all necessary regulatory approvals, the two companies plan to begin offering each other’s products and services to their respective clients from the end of 2019.
Also, subject to approvals, these activities will be incorporated into the co-branded joint venture company by early 2021.
Zenji Nakamura, UBS’s Japan country head, said: “This transaction is a boost for our overall business in Japan, as it also brings reputational benefits to our investment banking and asset management units which fall outside this alliance.
“It is a new milestone that sends a clear message of long-term commitment to the Japanese market.”
The two companies have agreed not to disclose the financial details of the transaction.
Services already offered
Sumi Trust Holdings offers a range of services, including banking, real estate, asset and wealth advisory to individuals and corporate clients.
As of end March 2018, it held ¥285trn (£2trn, $2.63trn, €2.33trn) in assets under custody and a significant portion of those assets come from high net worth and ultra-high net worth clients.
In Japan, UBS offers securities products, foreign exchange, banking products and a range of global financing and advisory services.
It operates from locations in Tokyo, Osaka, and Nagoya.
