Northern Trust has opened its first office in Japan to sell fund management, rather than global custody, to local pension funds . Northern Trust Global Investments, the investment management arm of the Chicago-based bank, has secured Japanese mandates worth $8 billion, including one from the Government Pension Investment Fund. The six-employee office in Tokyo, which opened in April, will offer fund management to clients such as public pensions, corporate pensions and corporations as well as other entities. “Opening our office in Tokyo is an important part of our plan to further develop as a truly global investment firm,” says Stephen Timbers, vice chairman of Northern Trust Corporation and president of Northern Trust Global Investments in Chicago. “At the same time, we are pleased to announce that NTGI has already been awarded several significant mandates for passive management from several of the most prominent institutions in Japan, including the Government Pension Investment Fund. We believe that the Japanese market has great potential for the services we offer.”
Timbers noted that in other markets NTGI had proceeded by alliances with other organizations, and that the company would look to do the same in Japan. “We have been seeking joint ventures and other linkages with major European financial organizations, such as those we have established with Helaba Invest KAG in Germany, Mediolanum in Italy, Groupama in France, Scottish Equitable in Scotland and ScotiaMcLeod in Canada,” he said. NTGI’s acquisition of the passive asset management business of Deutsche Asset Management has also increased NTGI’s presence in the international arena, he added.