SMAM consolidates market position following Toyota AM deal
10 June 2013
By Maya Ando
Sumitomo Mitsui Asset Management (SMAM) has recently consolidated its position in Japan’s fund industry following the completion of the acquisition of Toyota Asset Management on April 1 this year. With Toyota AM under its belt, SMAM has enlarged its assets under management from 10 trillion yen (US$102 billion) to 12 trillion yen, cementing its position among the leading firms in the local market.
Before the acquisition, SMAM’s AUM of 10 trillion yen made it the fifth largest manager of investment trusts in Japan, as of December 31, 2012.
Operated under the umbrella of Mitsui Sumitomo Financial Group, SMAM is 27.5% equally owned by Mitsui Sumitomo Insurance and Sumitomo Life Insurance and 40% by Sumitomo Mitsui Banking Corporation. The remaining 5% is held by Mitsui Life Insurance. Toyota AM was owned equally by Toyota Financial Service (Toyota FS) and Aioi Nissay Dowa Insurance. No price was disclosed for the acquisition of Toyota AM at the time when the announcement was made last year.
While consolidating its business at home, SMAM has also been busy looking to enhance its overseas footprint. Last year the firm revealed plans to establish a joint venture with Singapore’s UOB Asset Management named UOB-SM Asset Management Limited.
The JV will be equally owned by SMAM and UOB AM. Through the venture, SMAM and UOB AM will be able to cross sell their products on their respective platforms. The application to establish the Singapore JV is pending approval from the authorities.
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