Nomura, a Japanese financial services company, has agreed to acquire a 40% stake in Julius Baer Wealth Management (JBWM) from Swiss private bank Julius Baer Group for an undisclosed price.
The Julius Baer subsidiary is engaged in providing discretionary investment services for Japan-based clients.
Headquartered in Zurich, the JBWM portfolio management team offers its discretionary mandate services through its senior relationship management professionals in an office in Tokyo.
According to Julius Baer, the investment process at JBWM particular focuses on currency risks. The company claimed that the JBWM team is adept at navigating market cycles, with an aim to preserve client capital during periods of financial market distress.
Through the transaction, Julius Baer will bring the customized discretionary mandate services of JBWM to the high net worth client base of Nomura in Japan.
The deal is expected to complement Nomura’s domestic product offering with the international mandate services of JBWM.
Julius Baer Group CEO Bernhard Hodler said: “The strategic partnership with Japan’s premier securities firm represents a major milestone in our business strategy for Japan. Global financial markets are becoming increasingly complex, requiring skilful risk management, which is at the core of our offering in Japan.
“Working together with Nomura and 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.”
Nomura said that the access to JBWM’s discretionary investment management services will help in meeting the growing requirement of its high net worth clients to diversify their investments across the world through overseas financial institutions.
The Japanese financial services company further said that its partnership with Julius Baer will allow it to provide new and highly trustworthy investment opportunities to the high net worth clients and assist them in handling their assets.
Nomura said that it will work to further consolidate its partnership with the Swiss private bank and look for future opportunities to collaborate that will be mutually beneficial to both the companies.
After completion of the deal, JBWM will be renamed as Julius Baer Nomura Wealth Management to reflect the partnership between the Japanese and Swiss firms.