UBS & SuMi Trust launch strategic WM partnership

Ridhima Sharma
UBS & SuMi Trust launch strategic WM partnership

UBS and Sumitomo Mitsui Trust Holdings Launch Strategic Wealth Management Partnership

UBS AG plans to launch a comprehensive strategic wealth management partnership in Japan with Sumitomo Mitsui 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. 

The two companies have agreed to establish a joint venture, 51% 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.

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.

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.

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.

The two companies have agreed not to disclose the financial details of the transaction.