POST Online Media Lite Edition


Sumitomo Mitsui and Bank of Yokohama to talk about partnership

Staff writer |
Sumitomo Mitsui Trust Bank and Bank of Yokohama agreed to discuss forming a partnership in managing retail customers' money.

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.

What to read next

Mitsui Sumitomo to buy Singapore insurer for $1.6 billion
First foreign banks in Myanmar after 50 years
Gazprom signs 800 million deal with banks