AMP Capital signs Mitsubishi UFJ alliance

The deal sees the Japanese bank acquire a 15% stake in the Australian fund manager for A$425m as well as taking a board seat. AMP will be able to distribute its products to Mitsubishi’s extensive investor base.

AMP Capital Investors, the Australian fund manager, has signed what it describes as a “strategic business and capital alliance” with Japanese trust bank Mitsubishi UFJ Trust and Banking Corporation (MUTB). 

The deal will involve MUTB distributing AMP Capital’s products to its institutional and retail investors, as well as to retail banking and securities businesses owned by parent group Mitsubishi UFJ Financial Group. Also involved in distribution will be third-party securities companies and regional banks.

A statement issued by AMP Capital said the alliance would give it access to around 80 percent of Japan’s institutional investors, 14 percent of its retail and high-net-worth banking networks and 100 percent of its retail securities brokerage branches.

The tie-up also sees MUTB acquire a 15 percent stake in AMP Capital Holdings Limited (AMPCH), the parent company of the AMP Capital group of companies, for A$425 million (€322 million; $430 million). MUTB – which has an option to increase its shareholding to a maximum of 20 percent – will also take a board seat on AMPCH.  

The statement said that the consideration paid “includes recognition of the increase in profitability of AMP Capital that will flow from AMP’s merger with AXA in Australia and New Zealand”. AMP and French insurer AXA SA last month launched a $13 billion-plus bid for AXA Asia Pacific.

AMP chief executive officer Craig Dunn said the alliance with MUTB “will accelerate AMP’s growth into the Asian region through our investment management business, will help cement AMP Capital’s position as a leading international multi-class asset manager and will complement the existing strategic relationships we have in the region”.

The existing relationships referred to by Dunn helped AMP Capital to source 9 percent of its assets under management from Asia as at June 30 2011, according to the statement.

The statement added that, if the alliance is dissolved by either party in future, MUTB’s stake in AMPCH would be purchased back by AMP through an issue of shares in AMP Limited.  

The transaction is expected to complete in the first quarter of next year, subject to regulatory approvals.

Last week, AMP Capital announced it had reached €284 million at the third close of its latest infrastructure debt fund. Pertinently, the closing saw new commitments from LPs in Japan as well as the UK. In November, the firm was appointed manager of a €1 billion Irish infrastructure fund targeting asset disposals by the Irish government as well as new investments.