Trust Assets Business

We provide asset management and fund administration services: pensions, investment trusts, global asset management and investor services.

Junichi Okamoto Senior Managing Executive Officer Group Head, Trust Assets Business Group

We continue striving to provide distinctive products and services which meet customer needs.

Junichi Okamoto

Senior Managing Executive Officer

Group Head, Trust Assets Business Group

Fiscal 2014 Earnings Summary

Gross Profits ¥172.2 billion up 8% Net Operating Profits ¥70.1 billion up 8%

Gross profits rose 8% year on year (¥12.5 billion) to ¥172.2 billion while net operating profits were up 8% (¥5.1 billion) to ¥70.1 billion. We steadily accumulated assets under management in our main businesses including pension trusts, etc., leading to an increase in revenues.

Gross Profits and Net Operating Profits

Pensions

Pension Trusts and DC Pension Business Growing Steadily

Mitsubishi UFJ Trust and Banking maintains the top-level domestic share in pension trust balances. The asset administration balance and investment product sales balance for defined contribution (DC) pensions both grew steadily. Pension trust balances from the public sector (cooperative societies, etc.) also increased.

Pension Trust Balance, DC Pension Administration Balance, and DC Pension Investment Product Sales Balance

Investment Trust

Decision on Merger of Mitsubishi UFJ Asset Management and KOKUSAI Asset Management

We decided to merge the relevant Group companies to further enhance our asset management business. With our full product lineup and extensive sales network, we are in a position to meet our clients’ comprehensive asset management needs.

Investment Trust Management Balance and Investment Trust Administration Balance

Global

Acquisition of Overseas Fund Administration Company Meridian Holdings Limited

We acquired Meridian Holdings Limited in order to increase our competitiveness and scale in the fund administration market where rapid growth is anticipated. The acquisition was made through Butterfield Fulcrum Group (overseas fund administration company made into a subsidiary in fiscal 2013, currently Mitsubishi UFJ Fund Services).

Overseas Asset Administration Balance

TOPICS

Adoption of the Japanese Stewardship Code

The asset management companies in the MUFG Group (including Mitsubishi UFJ Trust and Banking) have announced their adoption of the Japanese version of the Stewardship Code framed by the Financial Services Agency. The Code aims to encourage a constructive dialogue between institutional investors and the companies they invest in. Through this, the companies’ corporate value will be enhanced and their sustained growth will expand medium- to long-term returns to investment beneficiaries. The Code gives us the opportunity to promote further sustained corporate growth and to support the Japanese economy from the financial perspective.

Our Long-Term Vision

Solidifying our Domestic Base while Becoming a Global IS (Investor Services) and AM (Asset Management) Player

Business Environment MUFG Strategy

Projected Business Environment and Management Strategy

In Japan there is a shift from savings to investments and we forecast an expansion of asset management needs. At the same time we see structural changes in the Japanese pension market with the welfare pension fund shrinking and DC pensions growing.
We project continued global growth in the overseas asset management business and high growth in the alternative fund asset administration segment.
In this environment, MUFG will respond to the structural changes in the Japanese market while tapping into the opportunities for global growth. We aim to become a global IS (Investor Services)/AM (Asset Management) player.

Forecast of Asset Management Business Asset Balance
Group-wide Investment Product Development

Medium-Term Business Plan (Fiscal 2015-2017)

Driving growth through responding to structural changes in the domestic market while expanding overseas revenues

Net Operating Profit Plan Foreign Investment Trust Balance

Strategy Focus

Global
Expand global asset management and administration business through investment and strategic alliances
Investment Trust
Leverage strength of the new investment trust company to provide high-value-added services and core products for customers who are forming assets.
Pensions
Strengthen consulting and advisory functions in response to systemic changes

FOCUS

Established Mitsubishi UFJ Kokusai Asset Management —Aiming to Be an Investment Trust Company Chosen around the World

On July 1, 2015, Mitsubishi UFJ Asset Management Co., Ltd. and KOKUSAI Asset Management Co., Ltd. merged to take a new step forward as Mitsubishi UFJ Kokusai Asset Management Co., Ltd. The management vision of the new company is to “always live up to our customers’ trust and act on their behalf in order to fulfill our fiduciary responsibility as an investment trust company,” “always provide value-added service that exceeds our customers’ expectations as a truly professional group” and “become the No. 1 investment trust company in Japan and a leading one in Asia that is chosen by customers around the world.”
We intend to build on the strengths that have been built up by both companies over their more than 50-year histories. We will refine our product development and investment capabilities, as well as the network of distribution partners (global sovereign and open) and customer support functions. Through this, we hope to make a contribution to both customer asset formation and the revitalization of the Japanese economy.
We are deepening our product development, delivering wrap investment trust products like First Wrap and Smart Quality Open, which cater to customers’ medium- to long-term asset formation needs, as well as Internet-related index funds like eMAXIS.
We sincerely request your continued support.

Takashi Kanagami Mitsubishi UFJ Kokusai Asset Management President & CEO

Mitsubishi UFJ Kokusai

Asset Management

President & CEO

Takashi Kanagami

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