Memorandum of Understanding is a first of its kind between a Singapore private bank and a leading Japanese bank
Bank of Singapore and SMBC Trust Bank have agreed on a partnership with the aim of providing clients of the Japanese bank with a wide range of global investment opportunities to diversify their portfolios.
This MOU will significantly raise Bank of Singapore’s profile amongst Japanese ultra-high and high net worth individuals where growth in assets under management (AUM) from this segment has been robust, with a 19% annual growth rate in 2017.
SMBC Trust Bank is a wholly owned subsidiary of Sumitomo Mitsui Banking Corporation - Japan’s second largest bank by assets. It offers a wide variety of services, with private banking services at its core.
According to Boston Consulting Group, private wealth in Japan is expected to increase from US$14.9 trillion in 2016 to US$16.2 trillion in 2021. Jones Lang LaSalle in a March 2018 report stated that Japanese investors are looking outside of Japan to expand and diversify their portfolios outside of domestic bonds and stocks into alternative asset classes including real estate. Outbound real estate investment from Japan was nearly US$3.5 billion in 2017, 70% more than in 2016.
Bank of Singapore was chosen on the grounds of its strong financial ratings – Aa1 from Moody’s, research and advisory capabilities, its ability to provide a wide range of innovative investment solutions through its open architecture product platform.
Bank of Singapore’s track record of partnering leading global asset management and investment firms to offer clients differentiated investment solutions was another strong factor in SMBC Trust Bank’s choice.
Said Mr Bahren Shaari, Chief Executive Officer of Bank of Singapore, “We are pleased that SMBC Trust Bank has selected Bank of Singapore to help their clients grow their wealth outside of Japan. This is a testament to the strong brand that Bank of Singapore has built as Asia’s global private bank in the last eight years.
“SMBC Trust Bank wanted a private bank with Asian roots whom they can trust to serve in the best interests of their clients. At Bank of Singapore, we manage money as if it were our own, investing in a good mix of products for good returns over the long-term and protect it for generations to come.”