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Financials

Japan's SMFG to acquire British asset manager for $190 mln - Nikkei

TOKYO, Aug 23 (Reuters) - Sumitomo Mitsui Financial Group (SMFG) will acquire British asset manager TT International for about 20 billion yen ($188 million), the Nikkei reported on Friday.

Japan’s second-largest lender by asset aims to obtain the London-based company’s expertise in emerging-market equities to attract Japanese investors hamstrung by low domestic returns, the Nikkei said, adding the deal is slated to close this financial year.

Japanese banks are turning to asset-based fees to generate a reliable revenue source under Bank of Japan’s policy that has kept ultra-low rates for years.

SMFG declined to comment. TT International could not be immediately reached for comment.

TT International had $8.4 billion in assets under management as of end-July, with about 60% invested in emerging-market stocks in Asia and elsewhere, the Nikkei said.

The London-based company will be operated separately from SMFG’s Sumitomo Mitsui DS Asset Management, according to the Nikkei.

$1 = 106.5700 yen Reporting by Takashi Umekawa; Editing by Stephen Coates

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