SLI forges a 'strategic alliance' with Japanese

Published on Tuesday 27 July 2010 21:50

STANDARD Life Investments (SLI) is teaming up with one of the largest trust banks in Japan in a partnership that will give the Edinburgh-based fund manager a major foothold in the country's huge retail and household savings market.

The strategic alliance brings together SLI's 146 billion of funds under management, and Chuo Mitsui Asset Trust and Banking's reciprocal asset management services.

Under the terms of the deal, SLI will initially advise on $1.2bn (769 million) of Chuo Mitsui's global equity funds, while Chuo Mitsui will advise on some $1bn of SLI's Japanese equity funds.

SLI and Chuo Mitsui will also be able to market each other's investment strategies through their respective distribution networks.

The alliance will, for the first time, give SLI access to the Japanese asset market, which is the second largest in the world and is reckoned to be worth $2.8 trillion. It will give Chuo Mitsui enhanced access to the UK, European and other overseas markets.

Keith Skeoch, chief executive of SLI, yesterday told The Scotsman: "We will get the ability to sell global equities through Chuo Mitsui in Japan.

"This is a further step along the road in extending our global reach. It provides the opportunity for significant revenue and profit generation through access, with a partner who enjoys a strong local brand. It would have taken us years to build a presence and a distribution system in Japan."

He added: "We've done due diligence and, as important, there is a meeting of minds. We got together just over a year ago and the personal chemistry is good - we act and think together."

It is understand the deal was signed earlier this month and will be effective as from today.

Tadashi Kawai, chairman of Chuo Mitsui, said: "This strategic alliance with SLI is an important step for us in developing an internationally focussed asset management business.

"SLI will benefit from our on-the-ground local knowledge and award winning investment expertise in Japan. There are many similarities in practices."

David Nish, chief executive of Standard Life, added: "One of our key areas of focus is expanding the global reach of our investment management business. The alliance with Chuo Mitsui provides a platform for growth in the second largest asset management market in the world.

"We will continue to look for strategic alliances across the group, which will help grow assets under management and provide a strong platform for profitable growth."

Two research analysts from Chuo Mitsui will transfer to work from SLI's Edinburgh office.