TOKYO -- Mizuho Financial Group and Dai-ichi Life Insurance on Thursday were to announce a new asset management company, according to sources.
The new company, to be launched on Oct. 1, is to manage assets worth about 50 trillion yen ($434 billion), which would be Asia's largest pool of assets. The parent companies hope the scale will help boost returns amid an increasingly difficult investment environment due to low interest rates.
The company is to be the result of a merger of DIAM, Mizuho Asset Management, Shinko Asset Management and the asset management function of Mizuho Trust & Banking.
The new company will not carry its parents' names, such as Mizuho or Dai-ichi, to make its association with the two less visible.
The new company will still trail global asset managers such as BlackRock and Vanguard Group, both from the U.S. and each of which has assets of over 100 trillion yen. The integration may prompt an industry reorganization in Japan.