The asset management arm of UBS has agreed to sell its Alternative Fund Services business.

MUFG Investor Services, the global asset servicing group of Mitsubishi UFJ Financial Group, has reached an agreement with UBS Global Asset Management to acquire its Alternative Fund Services (AFS) business, UBS said in a statement late last week.

The financial size of the transaction was not disclosed.

"This transaction is part of our strategy to build MUFG Investor Services into an industry-leading administrator, both organically and through acquisitions," Junichi Okamoto, group head of integrated trust assets business group and deputy president, Mitsubishi UFJ Trust and Banking Corporation, said.

"AFS’s strong client franchise, global footprint, and notably its strong presence in Asia, are an excellent strategic fit," he continued. "We are confident that our clients will benefit from the depth of combined resources and capabilities and from our commitment to innovation, coupled with AFS's market-leading technology platform. We welcome AFS to our growing business and look forward to continuing to provide our clients with best-in-class service."

The transaction is expected to close in the fourth quarter of this year, subject to regulatory approvals and other customary closing conditions.