Mitsubishi UFJ Trust is set to acquire UBS Global Asset Management’s Alternative Fund Services for around 30 billion yen ($24 million), according to Asian Nikkei Review.
The two parties have already reached an agreement on the deal, Reuters reported, and the sale is expected to close in the fourth quarter of this year once approved by regulators.
The acquisition would raise the Japanese firm’s fund administration business from 15th to seventh worldwide, with estimated assets of $260 billion, Nikkei said.
Fund administration is a lucrative business with attractive returns, so it’s not surprising to see the Japanese financial firm’s interest in acquiring the business from UBS, one of the top players in the sector.
Nikkei wrote:
“Commissions from fund administration are nearly 10 times those from securities custody operations. Switzerland-based UBS’ fund administration business operates in nine markets, including New York, London and the Cayman Islands. Administering nearly $140 billion in assets, it ranks No. 12 in the world.”
Photo credit: 401(K) 2012 via Flickr