JAPAN - Citigroup has formed a new custody and administration joint venture with Nikko Securities, after acquiring a 50% stake in the Nikko subsidiary, Nikko Trust and Banking.
The new joint venture, NikkoCiti Trust and Banking, plans to buy all of New York-based Citigroup's Japanese trust administration and custody business. NikkoCiti Trust and Banking will be headed by Akira Hirano and Stephen Turner, and will have 7tr yen ($58bn) in assets under administration.
Hirano, currently president of Nikko Trust, will become co-president of the new company along with Turner, who presently is the head of Cititrust Worldwide Securities Services in Japan.
NikkoCiti Trust and Banking will provide trustee, administration and custodial services to institutional investors, specifically public funds, pension funds, investment trust managers and the fund manager community. The new company will be wholly owned by Nikko and Citigroup, however additional terms of the joint venture were not disclosed.
Speaking about the launch of NikkoCiti Trust and Banking, Hirano said: We believe that, by combining Citigroup's global network and service strengths with Nikko Trust's local expertise and client access, we have created a platform from which to offer trust and custody services to Japanese and non-Japanese clients that is unparalleled in Japan.
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