Japan Post Bank, Sumitomo Mitsui Trust Bank and Nomura Holdings are in discussions to put up an asset management venture that will sell mutual fund products at the country’s post offices, according to Asian Nikkei Review.
The banking unit of Japan Post Holdings will likely contribute half of the new venture’s initial capital requirement, with Sumitomo and Nomura contributing about 30% and 20%, respectively. Regulators have already been informed about the planned venture, the report said.
Japan’s huge pile of investible funds have been attracting the interest of both local and foreign investors who were hoping to get a slice of these trillion dollar funds. According to a Wall Street Journal report, an estimated $3 trillion has been set aside for retirement in the country, with another $7 trillion held in cash or bank deposits.
Asian Nekkei Review wrote:
The alliance is in part aimed at helping bridge the divide between the postal group and private-sector banks, which have long accused it of crowding them out, ahead of this fall’s initial public offering of shares in Japan Post Holdings and its banking and insurance units.
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