MUFG to Establish Investment Facility for Emerging Managers Program

Mitsubishi UFJ Financial Group (MUFG), Mitsubishi UFJ Trust and Banking (MUTB), and Mitsubishi UFJ Asset Management (MUAM) have decided to establish an investment facility to support emerging asset managers, in addition to the introduction of their new training program for aspiring investment professionals under the Emerging Managers Program announced on January 15, 2024.

About the Program

In the context of economic growth and rising asset income, the role of the asset management industry is becoming increasingly significant in Japan. MUFG is committed to offering a diverse range of investment products to meet customers’ varied needs through expanding and raising the quality of our product lineups for both internally-managed products and products provided in partnership with external asset managers.

However, emerging asset managers in Japan face challenges in securing client assets due to lack of a track record, despite possessing innovative investment capabilities and qualified talent which existing asset managers lack. Such barriers are raising concerns that they would limit customers’ investment choices.

With the goal of delivering better products to our customers, MUFG will invest in funds managed by a wider pool of asset managers, including both internal investment teams and third-party asset managers (even if they lack an operational record or past investment performance), by leveraging our expertise in assessing asset managers developed through affiliated products selected in collaboration with third-party managers. This will enable emerging asset managers to develop investment track records, enabling MUFG to expand its product lineups and improve its investment capabilities, thereby contributing to the Japanese government’s initiative for “Promoting Japan as a Leading Asset Management Hub.”

Details of the initiative

MUFG launched its first fund of funds investing in Japanese private equity in 2019 and is one of the largest asset managers in Japan (cumulative total of 55 billion yen invested). Through this initiative, MUFG will develop a framework to invest in funds managed by emerging managers who lack a sufficient track record through the Investment Limited Partnership scheme, starting from domestic private equity funds (initial investment amount: around 5 billion yen).

This initiative will employ the proprietary capital of MUTB and MUAM to build up emerging managers’ investment track records, then aim to translate them into products for customers. Going forward, the Group will expand this initiative to complement their existing investment capabilities in asset classes such as hedge funds and commodities, which will both foster emerging managers and enhance their customer product offerings.

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