A new strategic partnership in Japan will see Nomura acquire a 40% stake in Julius Baer’s wholly-owned local subsidiary, Julius Baer Wealth Management (JBWM), according to a statement from the firm.
Upon completion of the transaction, JBWM will be renamed to Julius Baer Nomura Wealth Management, but the statement did not give a timeline.
Under the agreement, Julius Baer, which manages CHF400bn ($409.49bn) globally, will introduce JBWM’s bespoke discretionary mandate services to Nomura’s high net worth (HNW) client base in Japan.
Nomura added in a separate statement that it aims to provide such an offering to its clients in response to the growing need within the HNW space in Japan to diversify investments globally through overseas financial institutions.
“Nomura will work to further strengthen its partnership with Julius Baer and explore future opportunities to collaborate that will be mutually beneficial to both firms,” the statement added.
Both firms believe they complement each other; Nomura has a comprehensive domestic product range, while JBWM has an international focus.
“Working together with Nomura, with its comprehensive domestic network and knowledge, we can best share our internationally-diversified offering with a new audience and maximise the value of our presence in Japan,” Bernhard Hodler, Julius Baer’s chief executive officer, said in the statement.
Japan has the second highest ultra high net worth population globally with 17,915 UHNWIs having $1.68trn in wealth in 2017, according to Wealth-X’s latest UHNW report.
In terms of city rankings, two cities in Japan, Tokyo and Osaka, are among the top 10 cities with the highest UHNW population, with 6,785 and 2,730 UHNWIs respectively, the report added.
