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Mizuho, Dai-ichi Life to merge asset management businesses
Mizuho Financial Group and Dai-ichi Life Insurance will be combining their asset management operations to bulk up what is seen as a major opportunity and a growing market.
The Asset 8 Oct 2015
Mizuho Financial Group and Dai-ichi Life Insurance will be combining their asset management operations to bulk up what is seen as a major opportunity and a growing market.
 
As the majority of families in Japan keep their assets in bank deposits, Japan is considered a major opportunity for wealth and asset managers. Japanese households have US$14.3 trillion in assets and more than half of them in cash and deposits, and only 16.3% of their assets are in capital markets according to data from the Bank of Japan.
 
The Japanese government led by Prime Minster Shinzo Abe has been supporting and encouraging a transfer of money from deposits into capital markets to stimulate its economy. Abe’s main policy to support this is by introducing a tax-free individual savings account, which he implemented last year, which allows investments of up to 1 million yen each year without tax, hoping to attract those who have never invested in the market.
 
Japanese banks are also trying to expand their money management operations as new global regulations have been making their traditional lending businesses costlier.
 
Mizuho and Dai-ichi Life said they would combine Mizuho affiliates Shinko Asset Management and Mizuho Asset Management, the asset management division of Mizuho Trust and Banking, and Diam, a joint venture between Mizuho and Dai-ichi Life. Mizuho will own 51% voting rights of the combined company and Dai-ichi Life will hold the rest.
 
The new company will have 54 trillion yen (HK$3.48 trillion) in assets under management. Mizuho will own 51 percent voting rights of the combined company and Dai-ichi Life will hold the rest. The new firm will have 54 trillion yen ($449.5 billion) in AUM. They aim to complete the merger in the first half of 2016.
 

    

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