Mitsubishi UFJ Morgan Stanley Securities plans to increase assets managed for retail clients by 10 trillion yen ($62 billion) over the medium to long term. The firm also intends to expand its sales force and broaden its product range, including offering loans backed by a wider array of client assets.
The planned expansion by Mitsubishi UFJ Morgan Stanley Securities signals a significant push into Japan's growing wealth management market, driven by macroeconomic shifts that are encouraging retail investors to seek higher returns.
Mitsubishi UFJ Morgan Stanley Securities (MUMSS) intends to increase its assets under management for retail clients by 10 trillion yen ($62 billion) in the medium to long term, according to an interview with its president, Hiroyuki Seki. The joint venture between Mitsubishi UFJ Financial Group and Morgan Stanley also plans to hire several hundred new staff to expand its sales force.
This strategic push is fueled by anticipated growth in Japan's wealth management sector, as savers are expected to move funds from cash into higher-yielding investments due to the end of deflationary pressures and rising interest rates. These asset management fees have already contributed to increased profits across Japan's financial industry.
As of the end of March, MUMSS reported assets under management totaling 55.9 trillion yen. To achieve its growth targets, the firm plans to strengthen relationships with employees and executives of its existing corporate clients and diversify its product offerings. This includes introducing new loan products secured by a broader range of client assets, beyond the current equity holdings.