MUFG Announces New Asset Management Business Initiatives
MUFG has formulated an asset management business strategy with the aim of contributing to making Japan a leading asset management center by creating a virtuous cycle of growth and asset income.
Amid growing momentum for industry-wide reforms in the wake of the Japanese government’s announcement of its vision to promote Japan as a leading asset management center, the asset management business represents a key endeavor for creating a virtuous cycle of growth and asset income, as well as stimulating the Japanese economy by accelerating the shift from savings to investment and asset formation, and MUFG is positioning this business as one of its medium- to long-term growth strategies. As a global comprehensive financial services group, MUFG will empower people to build more prosperous lives by promoting investment and supporting asset formation through further enhancing its industry-leading asset management and investor services, and providing customer-centered professional investment advisory services and diverse solutions, as well as financial and economic education.
Initiatives aimed at strengthening MUFG’s asset management functions
Vision
MUFG’s goal for the asset management (AM) business is to become “Japan’s number one AM firm with a global presence” by providing investment services that exceed customers’ expectations though enhancing MUFG’s investment capabilities — with expertise gathered from both within and outside the company — while strengthening the governance framework of the MUFG asset management companies. MUFG’s target is to double assets under management from the current 100 trillion yen to 200 trillion yen by the end of fiscal year 2029. In terms of business strategy, MUFG defines the AM business as one of MUFG’s core businesses and positions its asset management company, Mitsubishi UFJ Asset Management (MUAM), as the fourth pillar alongside the Bank, the Trust Bank, and the Securities business.
In the investor services (IS) business, MUFG will leverage their advantage of being Japan’s number one investor services provider to promote business process outsourcing (BPO) service contracting for middle and back-office operations. MUFG’s aim is to contribute to improving the efficiency of the entire asset management industry by providing an environment where asset management companies and institutional investors can concentrate on investing. MUFG’s target for business volume is to double its BPO contracting balance from 40 trillion yen to 100 trillion by March 31, 2030.
Key Initiatives
Asset Management Business
- Enhance investment capabilities: Enhance the investment capabilities, especially in private markets, by consolidating expertise and functions within and outside MUFG (including optimizing investment functions in credit and alternative investment, further collaboration with Morgan Stanley, inorganic growth strategy, etc.)
- Enhance business infrastructure and asset management culture: Reform remuneration framework to attract and retain top-caliber investment professionals, as well as introduce new training programs for investment talent (MUFG’s version of a global emerging manager program)
- Strengthen governance framework: Ensure the independence of MUAM’s management, increase transparency, and strengthen product governance
Investor Services Business
- Improve efficiency at asset management companies: Provide an environment in which asset management companies can concentrate on investment by promoting BPO service contracting for middle and back-office operations, and providing the industry’s first single-party net asset value calculation service
Initiatives aimed at growing MUFG’s customers’ assets
Vision
MUFG will strive to expand their customers’ assets by engaging in customer-centered business operations.
Key Initiatives
- Improve the quality of investment advice: Along with using the “Investment Management Advice Chain” model to provide value-added advisory services and relevant information, strive to create proposals for comprehensive solutions by taking goals-based approaches that utilize digital technologies
- Upgrade the customer experience: Improve UI/UX, especially on Mitsubishi UFJ Direct (Internet Banking), MUFG’s core app, and provide a frictionless customer experience and personalized proposals
- Expand and enrich the MUFG digital platform: Support customers’ asset formation by providing wide-ranging content and information
- Promote the new NISA program: Raise public awareness of the NISA program by publishing ads and tie-up articles, holding seminars, and expanding productlineup in conjunction with promotional campaigns at each group company in order to help more customers make the transition from savings to investment
- Provide online securities functions: Provide a au Kabucom Securities convenient and low-cost trading platform in response to securities trading needs
Initiatives aimed at enhancing financial literacy
Vision
MUFG will pursue efforts to improve financial literacy in order to contribute to independent asset formation by people of all generations.
Key Initiatives
- For asset formation customers: Provide an extensive lineup of services through both in-person and online channels in accordance with customers’ attributes and needs.
- For students: Proactively promote financial and economic education through efforts such as MUFG’s Visiting Lecturer Program to boost financial literacy among younger generations
- For asset owners: Provide support for investment product selection based on participants’ financial literacy, including expanding the functions of the D-Canvas app aimed at defined contribution pension plan participants
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