Sumitomo Mitsui to buy British asset manager

Japan’s Sumitomo Mitsui Financial Group (SMFG) is set to acquire UK-based asset manager TT International (TTI) in a $188 million deal. With $8.4 billion of assets under management as of the end of July, TTI is an emerging market equities specialist and has roughly 60% of its estimated stock invested in Asian equities. It is the first time that SMFG has purchased a buy-side firm and the banking giant will offer TTI’s products to Japanese institutional investor. With low interest rates hampering returns, the bank is turning to TTI to entice local investors and strengthen its own revenues. It is not alone. In October 2018 Mitsubishi UFJ Trust and Banking spent $2.7 billion to acquire Commonwealth Bank of Australia's global asset management operations. The SMFG transaction, which is expected to close in March 2020, is reported to be worth $188 million (20 billion yen) although it could rise to $330 million after performance-related add-ons. TTI will retain its own brand and staff, including managing director and founder Tim Tacchi, and will operate separately from SMFG’s own Sumitomo Mitsui DS Asset Management business. “By acquiring all of TT International’s business, which have strengths in Asia and China and emerging market equities and also cover a wide range of pension investors in Europe, North America and Asia, [SMFG] will expand its overseas asset management business,” stated SMFG. ©2019 funds global asia

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