Chuo looks to launch funds in UK
Chuo Mitsui, the second-largest institutional manager in Japan, has signalled plans to launch Ucits III retail funds in the UK after appointing Canadian adviser Canaccord Adams to hunt out potential acquisition targets.
Christopher Renwick, head of sales and marketing at UK subsidiary Chuo Mitsui International, said the company was in the market for the infrastructure that would allow it to launch Ucits III funds.
He said: "If there were an organisation out there that, for whatever reason, was a little challenged to keep its Japanese fund going, we would be interested in talking to them.
"The reason organisations might be looking to scale back is that asset management companies are going through a tough time at the moment, and if they are looking to cut costs, Japan could be the best place to cut costs quickly, as the yen is strong against the pound."
He said some non-Japanese asset management companies may not have the expertise to run Japanese equity funds.
Mr Renwick added: "Japan is an expensive place to operate in, and Japanese equity products - unless you have substantial infrastructure - have a credibility crisis."
He said there was a greater emphasis on fundamental research in equities markets, with a need for people on the ground in target markets.
"We've got the research, we've got the portfolio managers," he said. "We're looking for more infrastructure, and we'd quite like to accelerate the process."
The company said it wanted to develop its Japanese and Asia equities and fixed-income fund management business.
Canaccord Adams has been charged with finding merger and acquisition targets and joint venture opportunities in the UK and Europe - Chuo Mitsui will be looking at ventures in the retail and institutional space.
Chuo Mitsui International launched in London earlier this year as the international subsidiary of Chuo Mitsui Asset Trust and Banking, which has AUM of $232bn (£156bn).
