Nomura Holdings, Inc. and Julius Baer Group Ltd. (JBG) have announced that they have signed a definitive agreement under which Nomura will purchase a 40 percent stake in Julius Baer Wealth Management Ltd. (JBWM), a wholly owned subsidiary of JBG.
Under the terms of the agreement, JBG will hold a 60 percent stake in JBWM, with the remaining 40 percent being held by Nomura. The new company will become an equity-method affiliate of Nomura. JBWM specializes in the provision of discretionary investment services for Japan-based clients with a successful 20-year track record. The portfolio management team, based in Zurich, provides discretionary mandate services via its senior relationship management professionals in the Tokyo office.
The investment process pays particular attention to currency risks, and the team has been adept at navigating market cycles, preserving client capital during times of financial market distress. With this strategic investment in JBWM, Nomura aims to give access to discretionary investment management services to respond to the growing need of its high net worth clients to diversify their investments globally through overseas financial institutions. JBG is the leading Swiss private banking group and has a long history of more than 125 years.
Nomura’s strategic partnership with JBG will enable the firm to offer new and highly trustworthy investment opportunities to its high net worth clients in Japan to help them manage their assets. Nomura will work to further strengthen its partnership with JBG and explore future opportunities to collaborate that will be mutually beneficial to both firms. Upon completion of the investment, JBWM’s name will be changed to Julius Baer Nomura Wealth Management Ltd.
Nomura plans to conclude the investment by the end of 2018. Nomura does not expect the investment to have a material impact on its consolidated results.
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