The UBS joint venture also comes as JVs are being used by Swiss and other banks to penetrate Asian markets, such as in Thailand, for example. 

Wider services
The JV was being signed in Zurich at the time of this article going to press. 

The joint venture will be 51 per cent owned by UBS, and that will offer products, investment advice and services beyond what either UBS Global Wealth Management or SuMi Trust Holdings is currently able to deliver on its own. 

“For instance, the joint venture will open UBS's current wealth management customer base to a full range of Japanese real estate and trust services, while SuMi Trust Holdings' clients - one of the largest pools of high net worth and ultra-high net worth individuals in Japan - will be able to access UBS's leading wealth management services, including securities trading, research, and advisory capabilities,” it said. 

“No wealth management firm today provides this range of offerings to Japanese clients under a single roof. UBS expects the new joint venture to fill this gap by offering expanded products and services to clients from both franchises,” it added. 

The Swiss bank said its JV is the “Japanese market's first-ever wealth management partnership developed between an international financial group and a Japanese trust bank”.

Subject to receiving all necessary regulatory approvals, the two companies plan to offer each other's products and services to their respective current and future clients from the end of 2019. Also subject to approvals, these activities will ultimately be incorporated into a new co-branded joint venture company by early 2021.

"UBS has over 50 years of history in Japan, and this landmark transaction with a top-level local partner will ideally complement our service and product offering to the benefit of clients,” Sergio Ermotti, UBS chief executive, said. "The joint venture is a blueprint for how complementary partnerships can unlock value for clients as well as shareholders."

Edmund Koh, UBS president Asia-Pacific said, "Japan is important for UBS and this alliance underscores our commitment to the market. Japan is the second largest high net worth market in the world and the third largest economy globally, and this partnership turbo-charges our ability to expand here."

Sumitomo
Sumitomo Mitsui Trust Holdings is Japan's largest trust banking group, with Sumitomo Mitsui Trust Bank, Limited serving as its core business. It offers a range of services, including banking, real estate, asset and wealth advisory to individuals and corporate clients.

At the end of March 2019, it held Y285 trillion ($2.63 trillion) in assets under custody - Japan's largest such pool - and a significant portion of those assets come from HNW and UHNW clients, it said. The JV puts it alongside UBS, with $2.4 trillion of AuM. UBS already operates in Tokyo, Osaka, and Nagoya.