Japan's SMFG to buy British asset manager to bolster fee-based revenue
* Rival MUFG bought CBA's unit for $2.9 bln last year
* Households' financial assets reached 1835 trln yen in
(Adds SMFG's announcement, details)
TOKYO, Aug 23 (Reuters) - Sumitomo Mitsui Financial Group
(SMFG) said on Friday it would acquire British asset
manager TT International, in a move to generate a fee-based
revenue and attract Japanese investors hamstrung by low domestic
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.
Sumitomo Mitsui, Japan's second-largest lender by asset, has
decided to buy a foreign asset manager for the first time, the
bank said in a statement, adding the transaction is slated to
close this financial year.
SMFG will spend about 20 billion yen ($188 million),
according to a person knowledgeable about the plans.
However, the company did not disclose any transaction
details in the statement.
With $8.4 billion in assets under management, London-based
TT international, an expert on emerging-market equities, will be
operated separately from SMFG's Sumitomo Mitsui DS Asset
Management, the Japanese bank said.
Other Japanese lenders have also made attempts to expand
aggressively into overseas asset management. Mitsubishi UFJ
Trust and Banking bought Commonwealth Bank of Australia's
asset management unit for $2.9 billion last
The government has tried to turn yield-hungry Japanese
savers into investors as its households' financial assets
reached 1,835 trillion yen ($17.2 trillion) at the end of June,
according to Bank of Japan's statistics.
($1 = 106.5700 yen)
(Reporting by Takashi Umekawa; Editing by Stephen Coates and
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