Chuo Mitsui Looks Beyond Japan Through Partnership With UK Firm

Vanessa Doctor

29 July 2010

Japan's Chuo Mitsui Asset Trust and Banking has partnered with the UK's Standard Life Investments to cross manage about $2.2 billion worth of funds.

Under the deal, Chuo Mitsui will be advising on and managing SLI's $1 billion equity strategy in Japan, while SLI will be subadvising Chuo Mitsui's $1.2 billion global equity fund. The agreement is meant to help each other expand into the other's market, which will be done through their respective distribution networks. Clients will then have the benefit of accessing both funds.

"With trends working against us demographically and the consolidation of the asset management industry, we decided it was time to expand (outside of Japan)," said Christopher Renwick, the London head of sales and marketing for Chuo Mitsui.

Japanese firms, which carry a reputation for favouring conservative investments, stand to gain from this type of agreement given the growing attention Asia is getting from other countries. Beyond institutional money, the Japanese hold about $15 trillion in personal assets, most of which are spent in low-yielding accounts.