Sumitomo Mitsui Trust Bank (SMTB) on Wednesday completed the acquisition of the Global Asset Services Division from Daiwa Securities Group.
The Global Asset Services Division comprises Daiwas 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. Global Asset Services clients are international asset managers and promoters whose investment strategies include hedge funds, funds of funds and private equity funds.
The parties entered into an acquisition agreement in June. The price for the acquisition was approximately equivalent to JPY 3.0 billion (24.3 million), based on the related valuation by a third party. The acquisition excludes DSTBEs subsidiary in the US.
The acquisition, now branded as SuMi Trust Global Asset Services allows SMTB to expand its activities into servicing alternative investment funds. Daiwa will focus on its securities and investment banking products, however, its will continue to retain the servicing of its offshore fund business with SuMi TRUST Global Asset Services.
SMTB intends to upgrade and expand 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 operational capabilities in the time zone of the clients. In addition, SMTB plans to offer its clients in Japan asset administration services for offshore products.
Hideki Hiraki, managing Executive Officer of SMTB: 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): 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.
(JDC)