Sumitomo Mitsui Trust Bank (SMTB) has 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 already has 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 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, says: “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.”
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.