SBI Holdings is preparing to set up a joint venture with US asset manager State Street Investment Management to launch investment trusts in Japan, according to Nikkei Asia.
The new company could be established as early as May.
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SBI is expected to hold a majority stake in the venture. It will be responsible for operations, management and sales, the report said.
State Street will oversee asset management.
The partnership is intended to support the launch of low-cost investment trusts and exchange-traded funds. These products are expected to invest in Japanese and overseas stocks, bonds and other asset classes.
SBI is aiming to position the offering against low-fee products already in the market, including Mitsubishi UFJ Asset Management’s eMAXIS Slim All Country fund. That fund, which invests in global equities, is known for fees of less than 0.06%.
To cut costs further, SBI plans to outsource custodian operations to State Street.
SBI has also set growth targets for its wider asset management business.
The group wants to increase assets under management from roughly Y13 trillion ($82.8bn) to Y20 trillion by the financial year ending March 2028.
The new joint venture is targeting assets under management in the trillions of yen within three years.
The planned tie-up is part of a broader push by SBI to deepen links with major overseas asset managers.
The group has been expanding such partnerships, particularly with firms that have expertise in alternative assets, as it seeks to widen its product range.
In 2023, SBI agreed to establish an asset management company with US private equity firm KKR.
In 2024, it announced a partnership with Franklin Templeton to develop digital asset products.
SBI has also decided to create a joint venture with US asset manager AllianceBernstein by this spring.
