On the 29 June 2012, SMTB signed a share purchase agreement with Daiwa for two entities, Daiwa Securities Trust & Banking (Europe) and Daiwa Securities Trust Europe.
The entities collectively formed its global asset servicing division, which included Daiwa’s fund administration/ UCITS management company, its custodian, its trustee and its authorised corporate director entities domiciled in Dublin, London and the Cayman Islands.
The acquisition, now officially completed, has been branded as SuMi TRUST Global Asset Services, and will: “allow SMTB to expand its activities into servicing alternative investment funds,” said a release. The group already has experience in the alternative investment market, as a shareholder, a distributor and as a hedge fund manager for its own alternative investment funds.
SMTB plans to expand on the middle office service offering for clients, and increase operational capabilities in the time zone of the clients. In addition, SMTB plans to offer its clients in Japan asset administration services for offshore products.
Hideki Hiraki, managing executive officer of SMTB, said: “We are very excited about this acquisition. We see considerable synergies between our banking operation, our fund management business, our existing clients and Global Asset Services.
"We intend to develop existing and additional servicing capacities in order to increase the client base of global asset services substantially.”
Masashi Oda, CIO of SuMi TRUST, predicted that the regime change in Japan is expected to end the age of long lasting deflation and Yen appreciation. However, he added that the firms' earnings estimates were revised downwards in October: "due largely to downgrading in overseas demand driven sectors such as electric appliances and manufacturing."
“The Prime Minister, Yoshihiko Noda, dissolved parliament and called a general election on 16th December. The Liberal Democratic Party (LDP), which is likely to win the election, promises aggressive monetary easing and expanding public expenditure in order to beat long lasting deflation. The LDP aims to achieve the goal by setting an inflation target of 2% and easing monetary condition further. The regime change is expected to end the age of long lasting deflation and yen’s appreciation which Japanese companies suffered for years.”
Daiwa will continue to retain the servicing of its offshore fund business with SuMi TRUST Global Asset Services.
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