Through the agreement, Daiwa will commercialize Itaú’s products in the Japanese markets and could also access the Brazilian market through the bank.
Itaú said it would launch two mutual funds in the Japanese market in August to be distributed through Daiwa Securities, one focused on Latin American corporates and the other a fixed income Brazilian securities fund.
Daiwa Asset Management will manage the two funds.
Itaú’s brokerage arm Itaú Securities already operates in Hong Kong and Tokio and will open offices in Beijing and Singapore in the second half this year.
Source: Business News Americas, 17.07.2008 Full Article
Source: Reuters 17.07.2008 See full article
TOKYO, July 17 (Reuters) – Japan’s Daiwa Securities Group Inc (8601.T: Quote, Profile, Research, Stock Buzz) plans to tie up with Brazil’s Banco Itau (ITAU4.SA: Quote, Profile, Research, Stock Buzz) in asset management, investment banking and broking as part of its strategy to further expand outside the Japanese market.
Daiwa has been taking steps to build up its operations outside the Japanese market, where it still generates 90 percent of its sales. The prospects for growth in Japan are limited given a mature economy and shrinking population.
Daiwa’s focus has been on Asia. In the past month it has announced plans to raise its stake in Vietnam’s Saigon Securities SSI.HM, buy convertible bonds in Taiwan’s Neo Solar Power Corp and invest in a fund targeting Chinese companies.
But Brazil has also been on its radar because of its rapidly growing economy and the high level of interest among Daiwa’s Japanese clients in Brazilian stocks and bonds.
Daiwa signed a memorandum of understanding in May with Itau to form an alliance and has since been talking with Brazil’s second-biggest private-sector bank on the details, according to Daiwa spokesman Hiroharu Misawa.
As a first step in the alliance, Daiwa said it would launch a mutual fund investing in Brazilian bonds and another fund targeting regional shares. Itau will advise on what to put in the funds, while Daiwa will use its network to market them in Japan.
Other possible areas of cooperation include investment banking, stock broking, research and personnel exchanges.
Daiwa could, for example, work with Itau to advise on cross-border mergers involving Japanese and Brazilian companies or use the alliance to help the growing number of Japanese companies active in Brazil tap local markets for funds.
Toyota Motor Corp (7203.T: Quote, Profile, Research, Stock Buzz) announced this week that it would build a new plant in the country while Nippon Steel Corp (5401.T: Quote, Profile, Research, Stock Buzz), Japan’s top steelmaker, is considering buying more shares in Brazilian affiliate Usiminas (USIM5.SA: Quote, Profile, Research, Stock Buzz).
Filed under: Banking, Brazil, Japan, Latin America, News, Services, Asia, BOVESPA, Brazil, Japan, Latin America, Merger, TSE Tokyo Stock Exchange, Vietnam
