Asset Management Services for Individual Customers
In the retail business segment, MUFG is pursuing the long-term vision of becoming the top financial group chosen by a wide variety of customers with a business that spans the generations. Despite the harsh investment environment reflecting negative interest rates, we are convinced that our comprehensive strengths will be up to the task. Employing these strengths, we will strive to satisfy customers’ asset management needs.
Satisfying Individual Customer Needs
Needs for asset management services vary largely by customer. Some customers may be just looking for an investment opportunity. Some may be focusing on modest yields and stable returns. And others may be open to aggressively taking risk for the chance of high returns. MUFG is capable of satisfying diverse needs thanks to the collaborative efforts of Group companies.
For beginners, we offer relatively low risk investment products through such outlets as our commercial bank and trust bank. The Nippon Individual Savings Account (NISA) is handled by the commercial bank, trust bank and securities companies, which together engage in Groupwide efforts to broaden the investor base. MUFG also offers a variety of products, including investment trusts, foreign currency deposits and insurance to assist in asset formation over the medium- and long-term. Moreover, for customers with a higher risk appetite, we have such proposals as stock investments and structured bonds that leverage our financial products intermediation functions.
Thanks to these and other initiatives, the balance of NISA accounts at MUFG totaled approximately ¥400 billion as of March 31, 2016. In addition, the balance of our financial instruments intermediary business account is also firm and stable.
Releasing New Products and Services
MUFG is constantly developing new products and services tailored to latest customer needs.
In September 2015, Mitsubishi UFJ Trust and Banking Corporation (MUTB) began handling the wrap account* “Mitsubishi UFJ Trust and Banking Fund Wrap.” This product offers various investment options optimized to customer needs thanks to robust investment know-how MUTB has acquired through the corporate pension administration and technologies of Mitsubishi UFJ Trust Investment Technology Institute Co., Ltd., a Group R&D organization. In February 2016, MUTB released the “Asset Succession Wrap,” which combines the aforementioned wrap account with an asset succession rider that allows a pre-designated successor to swiftly receive wrap account assets in the form of cash after going through a simple application procedure.
* A set of services ranging from investment management to asset management under discretionary investment contracts in which individual customers entrust such financial institutions as trust banks and securities firms to handle investment decisions based on their specialist expertise in financial instruments
Assisting in the Simultaneous Listing of Three Japan Post Group Companies
In November 2015, three Japan Post Group companies, namely, Japan Post Holdings Co., Ltd., Japan Post Bank Co., Ltd. and Japan Post Insurance Co., Ltd. were listed on the Tokyo Stock Exchange. With the value of shares offered totaling ¥1.4 trillion, this unprecedented transaction consisting of three concurrent IPOs was supported by Mitsubishi UFJ Morgan Stanley Securities (MUMSS) and Morgan Stanley. The former served as a joint global coordinator and domestic lead manager while the latter served as an overseas lead manager, with the assistance of other securities firms in Japan and abroad.
MUMSS was one of the top two bookrunners in terms of value of shares underwritten for domestic tranche, backed by MUFG’s Groupwide sales efforts and comprehensive strengths, including BTMU’s financial products intermediation. In addition, such Group subsidiaries as kabu.com Securities Co., Ltd., a dedicated online stock trading service company, contributed to the project.
MUFG is a unique financial group that boasts the distinctive lineup of financial products, such as IPO stocks, that can be purchased through its financial products intermediation service. Having offered stocks listed via the recent IPO project to a number of customers who visited our branches, we are pleased that many were open to the idea of buying stocks at their familiar bank counter. We are confident that the creation of this new business model is contributing to the shift from savings to investment in Japan.
Toshihiro Tomita
Manager, Securities Business Promotion Office,
Retail Banking Business Promotion Division,
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Services for Corporate Customers
Our corporate customers, many of which are prominent Japanese companies, are confronting ever more diverse and complex management issues while striving to devise sophisticated strategies. To accommodate their needs for optimal solutions, MUFG will leverage collaborations among the Group’s commercial bank, trust bank, securities company and leasing company, as well as strategic alliances with external partners. In these ways, MUFG will help its customers succeed.
Promoting a Sector-by-Sector Approach
The operating environment surrounding major corporations varies by business sector and category as does the optimal management strategy each corporation should choose. To provide services tailored to the needs of such corporate customers, MUFG is promoting a “sector-by-sector” approach. This business model employs MUFG’s capability to propose comprehensive financial solutions backed by an array of Group companies, each of which is equipped with expertise in a different sector. Moreover, with the aim of satisfying the needs of customers in their drive to globalize, staff at MUFG’s key domestic bases are engaging in close collaboration with their overseas counterparts. Employing our business network in Japan and overseas, we are striving to help customers enhance their competitiveness through the proposal of highly-value-added solutions.
Fiscal 2015 Achievements
In the field of investment banking, Mitsubishi UFJ Morgan Stanley Securities boasts an industry-leading track record in cross-border M&A as well as global IPO deals, thanks to synergies attributable to the strategic alliance with Morgan Stanley.
Strategic Capital and Business Alliance with Hitachi Capital
In May 2016, MUFG, Bank of Tokyo-Mitsubishi UFJ and Mitsubishi UFJ Lease & Finance Company Limited (MUL) agreed with Hitachi, Ltd. and Hitachi Capital Corporation (HC) to form a capital and business alliance.*
* On the premise that the alliance is approved by relevant authorities and terms and conditions stipulated in the alliance agreement are met; Plans call for initiating the alliance in August 2016.
Today, international competition over orders for new infrastructure development projects is intensifying in markets around the world. When taking on large and long-term projects, which often require the incorporation of financing packages, developers are increasingly in need of optimal solutions for funding infrastructure development. In these circumstances, financial institutions must collaborate with developers to create synergies by bringing together the former’s finance arrangement expertise and the latter’s technologies.
Against this backdrop, to secure the business growth and enterprise value improvement of both parties, MUL and HC have agreed to pursue specific discussions as follows: (i) the reinforcement of existing business by leveraging each other’s business franchise, (ii) the creation of new business opportunities by applying both parties’ know-how and network, and (iii) the development of new solutions by combining their strengths. In addition, with the aim of accommodating infrastructure sector needs for financing solutions, the five companies are scheduled to advance consultations with an eye to the embodiment of the open financial platform run mainly by MUL and HC.
