Sumitomo Mitsui and Bank of Yokohama to talk about partnership
The banks will decide as early as next month on the terms of their proposed asset management joint venture, which would mark Sumitomo Mitsui Trust's first business tie-up with a Japanese regional bank.
The new company will offer investment products designed for "long-term, diversified and stable asset management," according to a statement by the banks. These could include balanced funds, which hedge their bets by investing in multiple asset classes. Bank of Yokohama will sell these products through its branch network, collecting sales charges and a cut of management fees.
Depending on the success of the alliance, Sumitomo Mitsui Trust may forge similar partnerships with other local banks, most of which lack asset management units. This shortcoming makes it hard to develop exclusive investment products. Asset management could become a new focus of cooperation among Japanese banks. ■