2 August 2019

 

Mitsubishi UFJ Trust and Banking completes acquisition of First State Investments

 

Leading global investment manager, First State Investments today announced the completion of its sale from Commonwealth Bank of Australia to Mitsubishi UFJ Trust and Banking Corporation, a wholly-owned subsidiary of Mitsubishi UFJ Financial Group, Inc. (MUFG), for US$2.7 billion. 

Since its inception in 1988, First State Investments has evolved into a global investment management business with funds under management of US$155.1 billion1 on behalf of an international client base that extends across Asia, Australasia, Europe and North America. 

MUFG manages US$575 billion2 in funds on behalf of its clients. Its subsidiary Mitsubishi UFJ Trust and Banking is one of Japan’s largest asset managers. 

First State Investments will operate as a standalone global investment management business, governed by a Board initially comprising representatives from First State Investments and Mitsubishi UFJ Trust and Banking. It is expected that the Board will be expanded to include independent non-executive directors in the coming year.

Mark Steinberg, First State Investments Chief Executive Officer (CEO), commented that the transition in ownership means First State Investments now has the strategic support to continue the growth of its global business. 

“Today marks an important day for our business. Under MUFG ownership, we will have the financial backing and shared strategic vision to enable us to become an even stronger global investment manager.

“Our investment teams will continue to enjoy their current levels of investment autonomy, which has underpinned the business’ strong growth and long-term performance. Importantly, their commitment to incorporating ESG principles across their processes and strategies will remain central to their investment approach. 

“We maintain a consistent firm-wide view on our important role and responsibility as a steward of our clients’ capital. This underpins our corporate identity and will continue to be the binding element across our various investment teams’ philosophies and strategies,” Mr Steinberg said.

First State Investments offers a comprehensive suite of investment capabilities across a number of sought-after asset classes managed by experienced investment teams, some of whom have been investing for clients for over 25 years. Specialist capabilities include global emerging markets and Asia Pacific equities (managed by the First State Stewart Asia and Stewart Investors investment teams), listed and direct infrastructure, Australian equities, fixed income and multi-asset solutions.

Mikio Ikegaya, President and CEO of Mitsubishi UFJ Trust and Banking, commented: “From the outset, we have regarded First State Investments as a well-recognised global business, synonymous with first-class investment professionals and strong fund performance. 

“We are committed to supporting First State Investments’ strategy of delivering high-quality investment capabilities and establishing and maintaining strong client relationships. We look forward to working with First State Investments as we continue to expand our investment management business and investment offerings globally.”

 

1 Source: First State Investments as at 31 March 2019.

2 Source: Mitsubishi UFJ Financial Group, Inc. as at 31 March 2019.