UK insurer Standard Life has added
momentum to its globalisation strategy in the asset management
industry with the formation of a reciprocal alliance with Japanese
trust bank, Chuo Mitsui Asset Trust and Banking.
The alliance represents Standard
Life’s first entry into Japan’s asset management market which,
according to the insurer, is worth some $2.8trn. A trust bank
functions as a deposit-taking institution as well as acting as a
trustee.
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The alliance will initially see
Standard Life Investments (SLI) advise on around $1.2bn of Chuo
Mitsui’s global equity funds and Chuo Mitsui manage and advise on
around $1bn of SLI’s Japanese equity funds. SLI and Chuo Mitsui
will also be able to market each others investment strategies
through their respective distribution networks.
Standard Life CEO David Nish said:
“One of our key areas of strategic focus is expanding the global
reach of our investment management business. The strategic alliance
with Chuo Mitsui provides a platform for growth in the
second-largest asset management market in the world.”
Nish added that as part of its
strategy to increase assets under management (AuM), Standard Life
is continuing to seek strategic alliances across the group.
In terms of AuM, SLI and Chuo Mitsui are of similar size. With
operations in the UK, US, Ireland, Hong Kong and Canada, SLI has
AuM of almost £146bn ($222bn) while Chuo Mitsui has AuM of about
$260bn.
