Swiss private bank Julius Baer and Nomura have entered into a strategic partnership, with the Japanese bank acquiring a 40% shareholding in Julius Baer Wealth Management (JBWM).
As a result of this, Julius Baer will introduce JBWM’s discretionary mandate services to Nomura’s high–net-worth client base in Japan. In doing so, Nomura will complement its comprehensive domestic product offering with JBWM’s tailor-made international mandate services, the companies said in a joint statement.
The portfolio management team, based in Zurich, provides discretionary mandate services via its senior relationship management professionals in the Tokyo office. The investment process pays particular attention to currency risks, and the team has been adept at navigating market cycles, aiming to preserve client capital during times of financial market distress.
Upon completion of the transaction, JBWM’s name will be changed to Julius Baer Nomura Wealth Management to underscore the strategic partnership. Nomura will invest $7m in the unit.
Bernhard Hodler, chief executive of Julius Baer, said: “The strategic partnership with Japan’s premier securities firm represents a major milestone in our business strategy for Japan. Global financial markets are becoming increasingly complex, requiring skillful risk management, which is at the core of our offering in Japan.
“Working together with Nomura and its comprehensive domestic network and knowledge, we can best share our internationally diversified offering with a new audience and maximise the value of our presence in Japan.”
Julius Baer has been growing its business in recent years through a hiring spree, acquisitions and partnerships. The bank formed a partnership with Siam Commercial Bank in Thailand earlier this year.
This article was first published in our sister title InvestmentEurope.