Chuo Mitsui Trust & Banking Co. announced Thursday that it will invest in an asset management joint venture formed last month by Sumitomo Trust & Banking Co. and Daiwa Bank.
Sumitomo Trust and Daiwa, the only commercial bank in Japan with a trust and banking department, set up the asset management venture, Japan Trustee Services Bank, on June 20.
The expanded Japan Trustee Services Bank will focus on so-called master trust asset management, a fast-growing sector in the trust business, officials at the three financial institutions said.
Chuo Mitsui will join the expanded venture as an equal partner, they said, with sources close to the banks saying the new bank is expected to be capitalized at around 60 billion yen.
The venture, to be headed by Ryoichi Matsuda, a former Daiwa executive, will have an asset management portfolio of about 90 trillion yen, the largest in Japan.
Asset management services are expected to experience steady growth in the Japanese market in the future, but also require huge investment in information technology.
The asset management joint venture formed by the three banks would help galvanize its client base and allow for more effective capital investment, industry analysts said.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.