UBS targets $ 19 trillion opportunity in Japan

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The company announced Friday the launch of an alliance with the Japanese Sumitomo Mitsui Trust (CMTDF) to create a one-stop shop for asset management products and services.

SuMi Trust manages 285 billion yen ($ 2.6 trillion), while UBS manages more than 2.4 trillion yen.

Companies will start selling their products and services later this year. The plan provides for the creation of a joint venture owned 51% by UBS (UBS)at the beginning of 2021.

This arrangement shows how UBS plans to expand its customer base outside of Switzerland.

Wall Street kills the European investment bank

The bank has been striving for more reliable income from its wealth management business despite the continued weakness of its investment banking division. Asia has been a particular goal.

UBS became the first foreign bank to take control of its operations in China at the end of last year. CEO Sergio Ermotti said at the time that this expansion was a "key element" of the UBS strategy.

Japan is another good starting point for asset management.

The country's total wealth reached $ 19 trillion by the end of 2018, according to New World Wealth, a research firm. Japan has more than 7,700 people valued at more than $ 30 million.

In a memo addressed to employees, UBS manager Zenji Nakamura said the partnership "will extend the portfolio share to the customers of both franchises and, above all, attract a significant new clientele".

Ermotti said in a statement that UBS would pursue similar alliances with other banks.

SuMi is a blueprint on how complementary partnerships can create value for customers as well as shareholders, "he said.

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