Franklin Templeton and SBI Holdings have signed signed a memorandum of understanding to establish a joint venture in Japan focused on ETFs and emerging asset classes including digital assets and cryptocurrencies.
SBI Holdings is a Japanese Internet-based financial conglomerate providing a wide range of financial services including securities, asset management, banking, and insurance.
In a statement today (26 July), the global asset manager said the proposed JV would harness best-in-class capabilities of both firms by combining Franklin Templeton's comprehensive suite of investment products including ETFs, and its experience in digital assets, with SBI's strength in distribution, integrated financial services capabilities and reach in the Japanese market.
Jenny Johnson, president and CEO of Franklin Templeton, said: "We are excited to collaborate with SBI Holdings, a leading online financial conglomerate in Japan. The extensive reach of SBI's iconic brand amongst younger audiences in Japan aligns well our commitment to help this new generation of investors achieve their goals through our future-focused investment solutions.
"This strategic partnership underscores our shared belief that best-in-class financial capabilities should be more accessible for investors. It also represents a tremendous step forward to broaden our client reach and solidify our commitment in the market."
Yoshitaka Kitao, representative director, chairman, president & CEO of SBI Holdings, said: "We are very pleased to establish an asset management company in Japan as a JV with Franklin Templeton, a leading global investment management firm with 77 years of corporate history and tradition, as well as a strong track record in investment performance.
"SBI Group has been focusing on serving the interest of its customers as its primary mission since its inception. We are also proud of being a fast-rising financial group in Japan leveraging technology as one of its key sources of growth, and promoting various businesses related to Web3.
"We look forward to partnering with Franklin Templeton whose business includes focus on digital assets and provision of industry leading digital asset technology."
Franklin Templeton further said that with increased volatility across global markets, emerging asset classes including digital assets and cryptocurrencies, that have low correlation with traditional assets such as equities and fixed income, can help to diversify risk in an investor's portfolio.
Through this strategic partnership, Franklin Templeton and SBI will aim to provide investors in Japan with greater access to a diversified range of investment solutions.
With over 100 indexed and active ETFs, Franklin Templeton said its global ETF platform had grown significantly, and has more than $27bn in assets under management as of June 30, 2024.
As regulations related to digital assets and ETFs continue to evolve in Japan, the proposed JV would seek to enable new synergies by leveraging Franklin Templeton's experience with tokenized money market funds and digital assets-backed ETFs in the US.
"This, combined with SBI's in-depth expertise as a leader in Japan's digital asset space, will help offer innovative solutions that meet investors' evolving interests and objectives in the Japanese market", the statement said.
