TOKYO, Dec 22 (Reuters) - Sumitomo Mitsui Trust Holdings Inc (SMTH) has partnered South Korea’s Hana Financial Group Inc in retail asset management, SMTH told Reuters, as Japan’s fourth-largest lender looks to expand overseas.
SMTH said on Wednesday it will sell investment products such as mutual funds through Hana Financial’s brokerages and subsidiaries. In exchange, it will provide marketing and other know-how for selling investment products to retail customers, including how to give portfolio strategy advice.
The bank also said it is in talks to partner financial institutions elsewhere in Asia to build up an overseas retail asset management business in addition to its wholesale operations.
SMTH and its domestic peers are expanding in asset management - where they receive fees for managing customers’ money - as their lending businesses struggle in an ultra-low interest rate environment.
SMTH’s assets under management from overseas investors stood at 1.06 trillion yen ($9 billion) at the end of September, the bank said.
$1 = 117.7300 yen Reporting by Taiga Uranaka and Taro Fuse; Editing by Christopher Cushing