Industry Updates

Sumitomo Mitsui Trust Bank completes acquisition of Daiwa Global Asset Services

Friday, November 23, 2012

Tweet
Print
Email
Track Keywords

Opalesque Industry Update - On November 21st Sumitomo Mitsui Trust Bank Limited (“SMTB”) completed the acquisition of the Global Asset Services Division from Daiwa Securities Group. The Global Asset Services Division comprises Daiwa’s Fund Administration/UCITS Management Company, Custodian, Trustee and Authorized Corporate Director entities domiciled in Ireland, UK and Cayman Islands, including the activities in Hong Kong. The main clients of Global Asset Services are international asset managers and promoters whose investment strategies include hedge funds, funds of funds and private equity funds.

The acquisition, now branded as SuMi TRUST Global Asset Services allows SMTB to expand its activities into servicing alternative investment funds. The Group recognizes the potential of this market and already has considerable experience in the alternative investment market, as a shareholder, a distributor and as a hedge fund manager for its own alternative investment funds. SMTB plans to invest substantially in the acquired company by upgrading and expanding its core technology and the service capabilities of Global Asset Services. The emphasis will be on expanding the middle office service offering for clients and increasing the operational capabilities in the time zone of the clients. In addition, SMTB plans to offer its clients in Japan comprehensive asset administration services for offshore products.

Mr. Hideki Hiraki, Managing Executive Officer of SMTB: “We are very excited about this acquisition. We see considerable synergies between our banking operation, our fund management business, our existing clients and Global Asset Services. We intend to develop existing and additional servicing capacities in order to increase the client base of Global Asset Services substantially”.

Karl McEneff, CEO of Sumitomo Mitsui Trust (Ireland) Limited : “This is a very positive development for us and our clients given the strength and global presence of SMTB. We are looking forward to building further on our core foundation of operational and fiduciary excellence as well as market penetration under the new ownership”.

This transaction allows Daiwa to focus on its securities and investment banking products, however, Daiwa will continue to retain the servicing of its offshore fund business with SuMi TRUST Global Asset Services.

(press release)

About Sumitomo Mitsui Trust Bank
SMTB is one of Japan’s largest financial institutions with a capital of JPY342.0bn and total assets of JPY33,303.2bn. SMTB is the main entity operated under Sumitomo Mitsui Trust Holdings, Inc. (“SMTH”) listed on Tokyo, Osaka and Nagoya Stock Exchange. Established in 1925, SMTB offer wide range of banking, asset management, asset administration and real estate services to retail and institutional clients. SMTB’s credit rating is A+(S&P) and A1 (Moody’s). For SMTB, the acquisition of Daiwa Global Asset Services is part of its continued strategy to focus on providing asset servicing solutions both domestically and internationally with significant expertise and comprehensive capabilities.

About SuMi TRUST Global Asset Services
SuMi TRUST Global Asset Services offers securities services including fund administration, global custody, banking services, trusteeships and directorships to institutional investors, pension funds, public funds, mutual funds, hedge funds, funds of funds, private equity funds, family offices and managed accounts. With more than 20 years experience of providing operational excellence from Japan, USA, Luxembourg, Ireland, the UK, and Cayman Islands. SuMi TRUST Global Asset Services offers a turnkey solution for the set up and total servicing of UCITS funds together with other regulated and offshore fund products.

Article link