State Street, SBI plan Japan joint venture for index investing

State Street Investment Management and SBI Holdings signed a non-binding memorandum of understanding on May 5, 2026, to create a joint venture in Japan that will broaden access to index investment solutions for institutional, intermediary and retail investors.

The memorandum pairs State Street’s global index expertise with SBI Group’s domestic distribution and digital wealth platform. The firms plan to collaborate on product development and distribution for index-based strategies across Japan.

The agreement is non-binding and does not finalize structure, governance, product scope, timeline or financial terms. Both companies will continue to operate independently while negotiating the final contract and seeking required regulatory approvals.

State Street has operated in Japan for more than 25 years. SBI Holdings brings internet-based financial services and a growing digital wealth platform that reaches retail and intermediary channels nationwide.

The memorandum notes that Japanese households and institutions have been increasing allocations to investment products beyond traditional savings. Potential offerings referenced by the firms include exchange-traded funds, mutual funds and digital advisory solutions distributed through SBI’s channels.

Yie-Hsin Hung, chief executive officer of State Street Investment Management, commented: “SBI is a leading internet-based financial services group in Japan, and through its growing digital wealth platform, this partnership broadens access to our investment capabilities. The collaboration reflects our shared goal of delivering cost-effective investment solutions as Japan’s investment landscape evolves.”

Neither State Street nor SBI provided projections for assets under management or specific product launch dates. The companies indicated the memorandum marks the start of formal talks toward a possible joint venture in Japan.