The seventh largest Japanese life-insurer, Yasuda Mutual Life, has chosen the Swiss bank, UBS, as fund manager for 350 billion yen ($3 billion) worth of assets, which represents half of its entire investment portfolio.
The company revealed its decision in the Japanese economics newspaper, "Nikkei", adding that it hoped to increase its returns on foreign investments. The move marks the first time that a Japanese insurer has entrusted a European bank with such a large sum of money.
By giving the funds to UBS, Yasuda Life has handed over responsibility for both its domestic and foreign investments so that it can focus its attention on managing assets for its Far East investors.
The two companies are also planning to set up an investment advisory service in Hong Kong next spring.
Yasuda Life has had close ties to the Swiss bank for many years during which time it has looked to UBS for advice on how to manage its foreign investments to maximise returns.