NewJapan's Mizuho, Dai-ichi Life to combine asset management operations

Mizuho Financial Group and Dai-ichi Life Insurance, Japan's second-largest lender and life insurer by assets, respectively, are combining their money management operations to bulk up what is seen as a very promising business.

With most of its household wealth sitting in low-yielding bank deposits, Japan holds big potential for asset managers.

Prime Minister Shinzo Abe has been encouraging money to shift into stocks and other investments to give a boost to the nation's economy.

Japanese banks are also trying to expand their money management operations as new global regulations have been making their traditional lending businesses costlier.

Mizuho and Dai-ichi Life said they would combine Mizuho affiliates Shinko Asset Management and Mizuho Asset Management, the asset management division of Mizuho Trust and Banking, and Diam, a joint venture between Mizuho and Dai-ichi Life. Mizuho will own 51 per cent voting rights of the combined company and Dai-ichi Life will hold the rest.

The new company will have 54 trillion yen (HK$3.48 trillion) in assets under management.