AMP Capital, Mitsubishi UFJ Trust and Banking Corp forge an alliance
Australia’s AMP Capital Investors is to form a strategic business and capital alliance with Japanese trust bank, Mitsubishi UFJ Trust and Banking Corporation (MUTB), to expand its distribution footprint in Japan and accelerate AMP Capital’s growth into Asia.
Under the alliance, MUTB will distribute AMP Capital’s products to Japanese institutional investors. AMP Capital products will also be distributed to Japanese retail investors through MUTB, as well as MUTB’s parent company, Mitsubishi UFJ Financial Group’s retail banking and securities businesses, and through third party distributors such as securities companies and regional banks.
The alliance with MUTB will give AMP Capital access to around 80% of Japan’s institutional investors and approximately 14% of Japan’s retail and high net worth banking networks and approximately 100 retail securities brokerage branches.
MUTB will also acquire a 15% minority interest in AMP Capital Holdings Limited (AMPCH), the parent company of the AMP Capital group of companies, for A$425m, and will be offered one seat on the AMPCH Board.
The sum paid by MUTB includes recognition of the increase in profitability of AMP Capital that will flow from AMP’s merger with AXA in Australia and New Zealand, the firm said. AMP Capital managing director Stephen Dunne said the alliance will bolster the firm’s ability to deliver quality investment products to a broader client base.
“It builds on the successful business base AMP Capital has established in Japan where we have raised in excess of A$5.5bn in recent years and managed AUM of A$8bn on behalf of clients (as at 30 June 2011),” Dunne said.
As part of the alliance, MUTB will contribute seed capital to accelerate AMP Capital’s product development and innovation, and to drive investment innovation in the Japanese and other Asian markets. AMP Capital sourced 9% of its assets under management from Asia as at 30 June 2011 and it will continue to distribute its products to retail clients in Asia through existing distribution relationships.