Asset Management / Investor Services Business
We provide asset management and fund administration services: pensions, investment trusts, global asset management and investor services.
Medium- to Long-Term Strategy
Junichi Okamoto
Senior Managing Executive Officer
Group Head, Trust Assets Business Group
- •Respond accurately to changes in domestic pension market structure while expanding revenues from the overseas business, thereby driving growth
- •Overseas: step up asset management and investor service businesses by leveraging capital and business alliances
- •Japan: in the investment trust business, focus on providing high-value-added services while enhancing the product lineup for the customer generation just entering the asset building stage. In the pension business, strengthen our consulting and solution proposal capabilities in response to the changes in pension system
Key Operating Companies
- •Mitsubishi UFJ Trust and Banking Corporation (MUTB) is a top domestic asset manager that provides various investment products in Japan and overseas. MUTB is addressing customers’ complex and diversifying asset management needs in the face of growing investment opportunities overseas in tandem with Master Trust Bank of Japan, Ltd. MUTB provides comprehensive services ranging from pension system planning and asset management to administration services while striving to enhance its global competitiveness by forming capital and business alliances with overseas counterparts.
- •Mitsubishi UFJ Kokusai Asset Management Co., Ltd. is taking advantage of its broad sales channel to provide customers with medium- and long-term asset formation solutions backed by its strengths and expertise in product development, asset management and customer support.
- •MUFG Fund Services (Bermuda) Limited (the former Butterfield Fulcrum Group), which became a wholly owned subsidiary of MUTB in 2013, is providing customers with one-stop services under the new brand name “MUFG Investor Services.”
Fiscal 2015 Review
Fiscal 2015 Earnings Summary
Gross profits increased 0.4% (¥0.7 billion) year on year to ¥172.2 billion. Net operating profits rose 2.8% (¥1.9 billion) year on year to ¥70.2 billion. Despite a decline in revenues from the pension business due to a shrink in employees’ pension fund (EPF) plans, we recorded increases in both revenues and profits thanks mainly to growth in domestic and overseas asset administration balance.
Global
The fund administration market has become a promising growth field against a backdrop of worldwide trend toward the tightening of regulations. To secure competitiveness and a foothold for future expansion, we acquired the Alternative Fund Services business of UBS, through subsidiary MUFG Fund Services.
In the field of asset management service, MUTB agreed to collaborate with STOXX Limited, the top European investment index developer and provider, thereby entering the index business.(Please see “FOCUS” for details).
Investment Trust
Mitsubishi UFJ Kokusai Asset Management is putting its extensive product lineup and robust MUFG sales network to work to meet the wide-ranging asset management needs of its customers. Following the merger of Mitsubishi UFJ Asset Management and KOKUSAI Asset Management, operating profits rose thanks to the merger’s positive effects on gross profits and expenses. In addition, we established an advisory committee consisting of external specialists, with the aim of promoting business operations based on the customer’s perspective.
Pensions
As of March 31, 2016, MUTB’s pension trust balance totaled ¥14.7 trillion, remaining secure with one of the top shares in Japan. Moreover, the defined contribution (DC) pension administration balance amounted ¥3.4 trillion. The DC pension investment product sales balance was ¥2.1 trillion. As such, MUTB is enjoying steady growth in these pension categories.
FOCUS: Taking on New Challenge by Entering the Index Business through Collaboration with Switzerland-Based STOXX
In order to expand its profit sources, MUTB launched the index business through a collaboration with STOXX Limited, a subsidiary of Deutsche Börse AG, entering the rapidly growing “smart beta*” index business market.
In August 2015, MUTB and STOXX released the co-developed iSTOXX MUTB JAPAN Quality 150, an investment product based on a smart beta index, with the aim of satisfying the investment management needs of customers around the globe.
- *Offering an alternative to such traditional indices as TOPIX, smart beta indices aim for higher investment efficiency through the application of nontraditional investment theories for stock selection and weighing value, thereby realizing value-added investment products.
