MUFG's Trust Banking Division Targets $10 Billion in Alternative Assets Over Four Years

TOKYO, Jan 21 (Reuters) - Mitsubishi UFJ Trust and Banking Corporation, part of Mitsubishi UFJ Financial Group (MUFG), aims to increase its alternative assets under management to approximately 1.6 trillion yen (about $10 billion) over the next four years, as stated by Executive Officer Satoshi Someya. This initiative, aligning with Japan's rising interest rates, is part of the company's medium-term strategy which will continue until the fiscal year ending March 2030. Someya expressed optimism about potentially exceeding the target. The alternative asset categories include private credit, infrastructure, and real estate, with ambitions to allocate around 1 trillion yen to each sector. Someya noted that private credit, encompassing corporate financing and project finance loans, presents significant growth opportunities. The firm plans to attract funding from domestic institutional investors such as life insurers, regional banks, and pension funds, while also considering international institutional investors and high-net-worth individuals. Additionally, through its Australian subsidiary First Sentier Investors, MUFG has acquired London-based AlbaCore Capital, which specializes in alternative assets. To broaden its offerings, the trust banking division may explore mergers and acquisitions for expertise in sectors like overseas real estate and domestic infrastructure. ($1 = 158.1100 yen) Reporting by Miho Uranaka and Sam Nussey; Editing by Jamie Freed.