Sumitomo Mitsui Trust Asset Management to Open NYC Office

August 24, 2019 | Alternative Investments, News

The new office will start with 10 employees and follow the blueprint of its London operations

Sumitomo Mitsui Trust Asset Management (SMTAM) will open an office in Manhattan as soon as 2020. Japan’s largest asset manager, with $600 billion in AUM, plans to start with a staff of roughly 10 people. The announcement came from the CEO in a conversation with Reuters.

The asset management group falls under the broader Sumitomo Mitsui Trust Holdings.

It has offices in London, Hong Kong, and Singapore. It also plans to open an office in Luxembourg as it shuffles its strategy ahead of the Brexit.

Sumitomo Mitsui Trust Asset Management Expands

The New York office would be the firm’s first attempt to enter the United States as it expands its international client base. Its office is also part of an attempt to diversify from Japan’s market.

Sumitomo Mitsui Trust Asset Management already manages $20 billion in overseas assets. Furthermore, a large chunk of that capital originated from clients in the Middle East.

That figure is up sharply from the $1.2 billion in international assets it managed in 2012.

CEO Yoshio Hishida told Reuters that the new office’s strategy will align with its London-based team’s operations. They will focus on pensions, endowments, and other institutional clients. However, Hishida told Reuters that he recognizes the challenge of the U.S. markets.

“At the moment, we have almost nothing from U.S. and North American clients; the U.S. is a very tough market for non-U.S. managers, in general,” he said in the interview.

Japanese Takeovers Continue

As we noted in our daily recap of M&A deals in the alternatives space, Mitsui Financial Group announced plans to purchase TT International. This deal is part of a larger trend of Japanese asset managers gobbling up international rivals to increase their footprint.

Last year, Mitsubishi UFJ Trust and Banking snapped up the asset arm of Commonwealth Bank of Australia for $2.9 billion. Hishida told Reuters that he would be open to buying a foreign rival. However, he noted the challenges of integrating cultures in any deal.

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Artificial Intelligence: How CrowdSmart’s Predictive AI Improves VC Investments
July 7, 2020     Artificial Intelligence, News

CrowdSmart’s Cyrus is a software-as-a-service (SaaS) platform that uses AI and collective intelligence to better predict the likely result of an investment. Speaking to Barron’s in a panel interview, Polese…
Venture Capital: SaaS Data Protector OwnBackUp Gains $50M Funding
July 7, 2020     News, Venture Capital

OwnBackup is a cloud-to-cloud backup and restore vendor that provides automated, daily backups of SaaS and PaaS data, as well as data compare and restore tools for disaster recovery. Its…
Digital Assets: Now Book Any of 700,000 Expedia Hotels Through Crypto Friendly
July 7, 2020     Digital Assets, News is a blockchain-based, crypto friendly travel booking platform with access to over 2 million hotels in 230 countries. In a partnership with Expedia Partner Solutions announced Monday, more than…
FinTech: Digital Payment Company Square To Give Banks A Run for their Deposits – Analyst
July 7, 2020     FinTech, News

San Francisco-based Square Inc (NYSE: SQ), a digital payment processor led by Jack Dorsey, benefited Monday from a highly bullish report by SunTrust analyst Andrew Jeffrey. The stock touched an…