Daiwa Bank and Sumitomo Trust & Banking Co. announced Tuesday that they have set up a new trust bank specializing in the administration of pension funds and other assets.
The new bank, called Japan Trustee Services Bank, is capitalized at 50 billion yen, with the two banks holding an equal stake in the joint venture.
Yoshikazu Matsuda, currently managing director of Daiwa, assumed the presidency of the new trust bank.
The bank, scheduled to begin operating in October, will specialize in the administration of various assets including pension funds, investment trusts and “tokkin” specified money trusts.
It will also offer a Japanese version of master trusts, which were introduced in Japan at the end of March. Master trust operations would allow corporate pension funds to grasp at a single glance the overall performance of the assets they have entrusted to different asset managers.
The bank will have 50 trillion yen in assets under management in the first year of operations, the officials said.
Chuo joins State Street
Chuo Mitsui Trust & Banking Co. and U.S. financial group State Street Corp. plan to set up a joint investment advisory firm for pension assets as early as August, a Chuo Mitsui Trust official said Tuesday.
To be capitalized at 150 million yen and named Chuo Mitsui State Street Advisers, Chuo Mitsui Trust will own 70 percent of the new company and the remainder will be owned by State Street.
The joint venture will start operations with fewer than 20 employees.
By teaming up with State Street, Chuo Mitsui hopes to enhance its fund management overseas and survive intensifying competition for contracts with corporate pension funds, the officials said.
The new joint company is expected to focus on so-called passive management, a low-risk investment method linked to stock price indexes, the officials said.
Chuo Mitsui was created in April through a merger between Chuo Trust & Banking Co. and Mitsui Trust & Banking Co. Mitsui Trust had formed a business partnership with State Street.