Investment capabilities is what compelled Mitsubishi UFJ Trust and Banking Corporation (MUTB) to cement a distribution deal with AMP Capital Investors.
“MUTB is attracted to AMP Capital’s investment capabilities, particularly in the infrastructure, fixed interest and property asset classes, which are increasingly attractive to Japanese investors,” AMP Capital Investors managing director Stephen Dunne told InvestorDaily.
“Japanese investment cash flows are shifting from domestic assets to international assets with a strong focus on high-yield long-term assets like property and infrastructure.”
AMP Capital Investors has been investing in direct infrastructure since 1988 and currently manages infrastructure across all sectors in Australia, New Zealand, Asia, the United States and Europe.
“In property, we are one of the most recognised real estate fund managers in the region. We are also an experienced listed property manager and we remain focused on expanding into new markets and providing new opportunities for our investors,” Dunne said.
“MUTB also has the opportunity to participate in the earnings of AMP Capital, a leading investment manager in the world’s fourth largest pensions market.”
AMP Capital Investors recently announced it would form a strategic business and capital alliance with MUTB to expand its distribution footprint in Japan. The company is also looking at opportunities in China and India to further accelerate its Asian expansion.
The alliance will give AMP access to 80 per cent of Japan’s institutional investors, around 14 per cent of its retail and high net worth banking networks and 100 retail securities brokerage branches.
MUTB will acquire a 15 per cent minority interest in AMP Capital Holdings for $425 million and will be offered a seat on the board.
It will distribute AMP Capital’s products to Japanese institutional investors and 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 creates a significant long-term opportunity for AMP Capital Investors. It replicates the successful distribution footprint that we have here in the Australian markets,” Dunne told InvestorDaily last week.
“Japan has been our number one marketplace, our number one focus. We have raised about $5.5 billion from that market and since we have been operating there we have raised about $8 billion, but we are also interested in opportunities in China. As you know, we have a relationship with China Life and also we are looking for opportunities in India as well.”
