Mitsubishi UFJ Trust and Banking Corp. plans to go on a ¥150 billion spending spree to acquire asset management companies in the United States, India and South Korea to expand its overseas operations, the group’s new chief said Thursday.
“We are ready to invest up to ¥150 billion” over the next three years, said President Tatsuo Wakabayashi, who assumed the post April 1.
Wakabayashi said the group believes such acquisitions will strengthen its foreign stock and bond investment performance, helping it to better meet the increasingly diversified needs of Japanese and overseas customers, including foreign institutional investors.
Wakabayashi sounded confident MUFT Trust can compete with its giant rival Sumitomo Mitsui Trust Bank Ltd., which recently became the nation’s largest trust bank on April 1 after a massive triple merger with other lenders.
MUFJ Trust “is far ahead of it in terms of globalization and has a greater surplus investment capacity,” he said.
The group will use “the dominant customer base” of Mitsubishi UFJ Financial Group Inc. to enhance cooperation among subsidiaries and compete with Sumitomo Mitsui Trust, he said.
Touching on the massive pension asset losses at AIJ Investment Advisors Co., Wakabayashi said trust banks should work with the Financial Services Agency to draw up measures against falsifying fund performances.
Trust banks have been criticized for their alleged role in the AIJ scandal because they were holding pension fund assets in trust, including for AIJ’s customers, and involved in investing them at AIJ’s discretion.