Tokyo (SCCIJ) – The Swiss bank UBS and the Japanese bank Sumitomo Mitsui Trust are planning a joint venture in wealth management. The Swiss bank will hold 51% of the joint venture that will offer products, investment advice, and services beyond what either UBS Global Wealth Management or Sumitomo Mitsui Trust is currently able to deliver on its own. Their products and services will be offered to their respective clients by the end of 2019. The activities would then be integrated into the joint venture by the beginning of 2021 with a uniform brand identity.
UBS Japan Headquarters in Tokyo
Full range of wealth management
For instance, the joint venture will open UBS’s current wealth management customer base to a full range of Japanese real estate and trust services. Sumitomo Mitsui Trust Holdings’ clients – one of the largest pools of high net worth and ultra-high net worth individuals in Japan – will be able to access UBS’s leading wealth management services, including securities trading, research, and advisory capabilities.
No wealth management firm today provides this range of offerings to Japanese clients under a single roof. UBS expects the new joint venture to fill this gap by offering expanded products and services to clients from both franchises. This endeavor is the Japanese market’s first-ever wealth management partnership developed between an international financial group and a Japanese trust bank.
Long Japan tradition of UBS
Sergio P. Ermotti, UBS Group Chief Executive Officer, 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.” He added: “The joint venture is a blueprint for how complementary partnerships can unlock value for clients as well as shareholders.”
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 a long-term commitment to the Japanese market.”
UBS will contribute all of its current wealth management business in Japan to the new company, while SuMi Trust Holdings will extend its vast trust banking expertise and refer relevant clients to the new joint venture. The two companies have agreed not to disclose the financial details of the transaction.
About Sumitomo Mitsui Trust Holdings
Sumitomo Mitsui Trust Holdings is Japan’s largest trust banking group, with Sumitomo Mitsui Trust Bank serving as its core business. It 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 285 trillion yen in assets under custody – Japan’s most extensive pool – and a significant portion of those assets come from HNW and UHNW clients. The company also has unprecedented corporate client access and brand name awareness in Japan.
About UBS
UBS is the world’s leading wealth manager, with over US$2.4 trillion in assets under management. Asset Management and Investment Bank units enhance UBS Group, as well as its premier universal bank in Switzerland. In Japan, UBS offers securities products, foreign exchange and other banking products, global research, and a full spectrum of worldwide financing and advisory services. It operates from locations in Tokyo, Osaka, and Nagoya.
UBS is present in all major financial centers worldwide. It has offices in 50 countries, with about 31% of its employees working in the Americas, 32% in Switzerland, 19% in the rest of Europe, the Middle East, and Africa and 18% in the Asia Pacific. UBS Group AG employs over 67,000 people around the world. Its shares are listed on the SIX Swiss Exchange and the New York Stock Exchange (NYSE).
In Japan, the firm offers corporate, institutional, and high net worth private clients a full array of financial products and services through four entities: UBS Japan Securities Co., Ltd., UBS AG Tokyo Branch, UBS Asset Management (Japan) Ltd, and UBS Japan Advisors Inc.
Text and photo: UBS
