Alliance in Asset Management between SuMi Trust and Daiwa Securities
Sumitomo Mitsui Trust Group, Sumitomo Mitsui Trust Bank, Daiwa Securities Group, and Daiwa Institute of Research have entered into a business alliance agreement in the field of asset management and asset administration. By combining the strengths and expertise of both groups, the companies aim to reform the asset management industry as part of the government's "Policy Pan for Promoting Japan as a Leading Asset Management Center" by improving the efficiency of the entire asset management industry.
SuMi TRUST Group supports asset management industry productivity enhancement and operational efficiency improvement through efficient and reliable asset administration solutions, including trust services and BPO services, in order to enable asset management companies to allocate their resources on investment management and other strategic areas.
Daiwa Securities Group provides a wide range of IT solutions, with a focus on middle and back-office operations, including accounting services for asset management companies.
As mentioned in the "Policy Plan for Promoting Japan as a Leading Asset Management Center", the asset management industry faces various challenges, such as unique business practices in the Japanese market and barriers to entry. This alliance aims to overcome these challenges and promote the development of the entire industry.
Both groups will bring together their expertise to first establish a "data sharing platform" to facilitate the smooth exchange of information and data between asset management companies and trust banks. Leveraging this platform, the partners aim to establish a Single-NAV calculation solution while reducing system costs and improving operational efficiency across the asset management industry through the provision of IT solutions centered around middle and back-office operations directed at asset management companies.
SuMi TRUST Group will promote the operational efficiency of the entire industry by expanding BPO services and establishing schemes compatible with Single-NAV calculation using the "data sharing platform", and providing services linked with asset administration solutions. Daiwa Securities Group will provide IT solutions to asset management companies in addition to building the "data sharing platform". Moreover, by further enhancing the information and data flow between distribution companies and asset management companies, the partners aim to maximize client asset value through product governance.
Following the establishment of the Single-NAV calculation solution, the companies will fundamentally review operations and build schemes suitable for Single-NAV calculation so that they may be used and shared across the industry, aiming to promote the use of data and digitalize asset management companies middle and back-office operations. Additionally, by creating an environment that enables asset management companies to outsource their operations, the partners will enhance the competitiveness of asset management companies while promoting an environment that facilitates the entry of new asset management companies.
The companies will regularly disclose details of their efforts and provide information with high transparency. Furthermore, they will enhance personnel exchanges between the two groups, promote the digitalization of the entire industry, and contribute to the development of the asset management and asset administration industry.
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