Tokyo/Zurich, 07 June 2019 – UBS AG today announced plans to launch a comprehensive strategic wealth management partnership in Japan with Sumitomo Mitsui Trust Holdings, Inc. (SuMi Trust Holdings). The new joint venture will combine UBS's global capabilities in wealth management, meeting the needs of wealthy individuals, with SuMi Trust Holdings' stature as Japan's largest, independent trust bank.
A final signing of the agreement by both parties is planned for today at approximately 9:30AM CEST at UBS's headquarters in Zurich.
The two companies have agreed to establish a joint venture, 51 percent owned by UBS, that 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. 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, while SuMi Trust Holdings' clients - one of the largest pools of high net worth (HNW) and ultra high net worth (UHNW) 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 is the Japanese market's first-ever wealth management partnership developed between an international financial group and a Japanese trust bank. Subject to receiving all necessary regulatory approvals, the two companies plan to begin offering each other's products and services to their respective current and future clients from the end of 2019. Also subject to approvals, these activities will ultimately be incorporated into a new co-branded joint venture company by early 2021.
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 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.
Sumitomo Mitsui Trust Holdings is Japan's largest trust banking group, with Sumitomo Mitsui Trust Bank, Limited 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 largest such pool - and a significant portion of those assets come from HNW and UHNW clients. The company also has unsurpassed corporate client access and brand name awareness in Japan.
UBS is the world's leading wealth manager, with over US$2.4 trillion in assets under management. The UBS Group is enhanced by Asset Management and Investment Bank units, as well as premier universal bank in Switzerland. In Japan, UBS offers securities products, foreign exchange and other banking products, global research, and a full spectrum of global financing and advisory services. It operates from locations in Tokyo, Osaka, and Nagoya.
The two companies have agreed not to disclose the financial details of the transaction.
UBS provides financial advice and solutions to wealthy, institutional and corporate clients worldwide, as well as private clients in Switzerland. UBS's strategy is centered on our leading global wealth management business and our premier universal bank in Switzerland, enhanced by Asset Management and the Investment Bank. The bank focuses on businesses that have a strong competitive position in their targeted markets, are capital efficient, and have an attractive long-term structural growth or profitability outlook.
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 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.