Barclays, SMBC Form Venture To Tap Wealthy Japanese

1st Jul 2010 07:36

By Margot Patrick Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Barclays PLC (BCS) Thursday said it will look to sell private banking products and services to wealthy Japanese under a new joint venture with Sumitomo Mitsui Financial Group Inc. (8316.TO), giving it a foothold in a market that is expected to grow as an aging population seeks higher returns on its investments. The new business, called SMBC Barclays Wealth Division and staffed by people from both companies, will operate within SMFG's Nikko Cordial Securities Inc. unit and will initially focus on providing private banking to wealthy individuals in Osaka, Tokyo and Yokohama. No cash is changing hands between the two companies and no assets are being transferred. "In SMBC, we are delighted to have a partner with the local distribution network which gives the JV unparalleled access to the Japanese high net worth client base," said Didier von Daeniken, chief executive officer of Barclays Wealth, Asia Pacific. "Coupled with the intellectual capital and investment expertise of Barclays Wealth and the platform excellence of Nikko, I am confident that the JV will be able to provide comprehensive advice and a broad range of investment solutions tailored to the complex needs of SMBC's high net worth clients," he said. There were 1.65 million people in Japan with net worth of more than $1 million in 2009, according to the Merrill Lynch/Capgemini World Wealth Report, a 20.8% increase from 2008. They are among the world's most conservative in their investments, the study found, holding more than half of their portfolios in cash or bonds. -By Margot Patrick, Dow Jones Newswires; +44 (0)20 7842 9451; [email protected] (END) Dow Jones Newswires July 01, 2010 02:36 ET (06:36 GMT)