SMBC Group Partners with BNP Paribas Asset Management for Latest EMP Investment
Sumitomo Mitsui Financial Group (SMFG) and its banking unit, Sumitomo Mitsui Banking Corporation (SMBC), have announced a new investment in a hedge fund managed by an emerging asset manager, taking advantage of Japan's shifting monetary environment,
The investment, executed in collaboration with BNP Paribas Asset Management, through its Prime unit, will focus primarily on yen-interest rate products using a macro strategy that leverages long-short positions.
This transaction marks the latest deployment under the "SMBC Group version Emerging Manager Program (EMP)". Launched in 2024 as part of the group's broader strategic pivot to become an "Asset Management Solution Provider," the program aligns with the Japanese government's policy goal of realizing a leading asset management state.
According to the group, Japan’s prolonged low-interest-rate environment has reached a turning point, renewing market interest in yen-denominated rate strategies. Through this investment, SMBC aims to generate new investment opportunities in a "world with positive interest rates" while fostering the growth of burgeoning asset managers.
Due diligence for the fund structure and the underlying investment targets was provided by Sumitomo Mitsui DS Asset Management.
Tracking SMBC’s EMP Progress
This yen-interest rate allocation represents the third distinct asset class backed by the SMBC Group EMP over the past 16 months:
- February 2025 - Domestic Buyouts / Venture Capital
A fund-of-funds vehicle managed by SMBC subsidiary A.I. Capital, targeting emerging domestic private equity and VC managers. - March 2025 - Japanese Equities
Long-short equity strategy. - June 2026 (Current) - Yen Interest Rates
Macro strategy utilizing long-short positions.
SMBC Group reiterated its commitment to expanding the program, stating it will continue to invest in distinctive, emerging managers to enhance its investment capabilities and support the domestic financial ecosystem.
Norbert Gehrke
