5. Enhancing our asset management business
In July 2016, SMBC acquired an additional 20% of the outstanding shares of Sumitomo Mitsui Asset Management Company (SMAM) from Sumitomo Life Insurance, Mitsui Sumitomo Insurance Company and Mitsui Life Insurance Company (presently Taiju Life Insurance Company), and made it a consolidated subsidiary. Although SMBC, SMBC Nikko Securities and SMBC Friend Securities, had marketed investment trust products of SMAM, by raising the shareholding ratio SMBC aimed to dramatically improve SMAM’s capabilities, making SMAM an asset management company that is readily chosen by product sales companies, especially outside the Group. SMFG acquired all the shares of SMAM held by SMBC in October 2016, and SMAM became a directly owned subsidiary of SMFG with 60% of ownership.
While the asset management business generally benefits from the scale of markets, the market shares of SMAM and Daiwa SB Investment (DSBI) were both relatively small. In May 2018, Daiwa Securities Group, Mitsui Sumitomo Insurance Company, Sumitomo Life Insurance, and SMFG concluded a memorandum of understanding (MOU) on the merger of SMAM and DSBI. Based on this MOU, the merger plan was executed to form Sumitomo Mitsui DS Asset Management Company, Limited in April 2019.
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Chapter 1The Financial Crisis and Realignment of the Financial Sector
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Chapter 2The Birth of SMBC and SMFG
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Chapter 3Initiatives Pursued by SMBC Banking Units in the Early Years
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Chapter 3Initiatives Pursued by SMBC Banking Units in the Early Years
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- Enhancing our retail consulting and payments & consumer finance businesses
- Enhancing corporate financial solutions
- Banking-Securities collaboration in the wholesale securities business
- Challenges facing our global banking business
- Actions by Treasury Unit in preparation for rising interest rates
- Integration of operating systems and administrative functions
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Chapter 4Embarking on Fresh Challenges Under New Leadership
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Chapter 4Embarking on Fresh Challenges Under New Leadership
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- Changes of leadership and the announcement of our new management policy
- Developing group business strategies
- Addressing antitrust issues
- Completing repayment of public funds
- LEAD THE VALUE
- Enhancing our retail financial consulting business
- Enhancing our corporate solution business
- Enhancing our investment banking business
- Global banking business turnaround
- Upgrading risk management in preparation for Basel II
- Development of human resources
- CSR activities
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Chapter 5SMFG’s Response to Global Economic and Financial Turmoil
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Chapter 6Preparing for the Next Decade
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Chapter 1Business Model Reform Under Challenging Business Conditions
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Chapter 1Business Model Reform Under Challenging Business Conditions
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- Our journey under new leadership (the second decade)
- Focusing on growth industries and businesses
- Reforming domestic business operations
- Promoting banking-securities collaboration in Wholesale Banking Unit
- Structural reform of our retail business
- Meeting the needs of an aging society
- Abenomics and Treasury Unit's nimble portfolio management
- Operating in a negative-interest-rate environment
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Chapter 2Enhancing Group Businesses
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Chapter 3Expanding Our Global Business
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Chapter 4Enhancing Corporate Infrastructure Under a New Governance Framework
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Chapter 4Enhancing Corporate Infrastructure Under a New Governance Framework
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- New leadership and enhancing corporate governance
- Introducing group-wide business units and CxO system
- Improving capital, asset, and cost efficiency
- Pursuing our cashless payment strategies
- Retail branch reorganization
- Customer-oriented business conduct
- Enhancing internal-control frameworks
- Valuing diversity and revision of our HR framework
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Chapter 5The Path for Our Future
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Chapter 6Opening a New Chapter in SMBC Group’s History