AMP Capital Investors has acquired a Japanese-based boutique investment distribution business as part of a strategy to take advantage of opportunities in Asia Pacific’s largest asset management market.
Japan is one of the most attractive markets for foreign asset managers, said AMP Capital Investors’ director of international business, Michael Clarke. The acquisition of Gemini Advisors Securities Investments is part of a strategy to gain broader access to key distribution channels to Japanese financial institutions, private pension schemes and retail investors.
“The acquisition of Gemini is definitely part of our move towards being a more regional player in the Asia Pacific region,” said Clarke. “We’ve been working down this path for the last four or five years and one of the principals [of Gemini] will continue to work with us and become part of the AMP business in Japan.
“This is a very important step forward for us to be able to now directly work with particularly Japanese retail and institutional investors.”
AMP Capital Investors is also expanding its Tokyo office, propping up its sales and client specialist teams.
Gemini, in which AMP Capital Investors had a 30 per cent stake prior to acquisition, has been the exclusive distributor of AMP Capital’s investment products and services in Japan since 2003.
“The company has already helped AMP Capital raise over A$4 billion from Japanese retail investors and we look forward to the opportunity to expand our offering to institutional investors,” Clarke said.
“The Japanese market has trillions of dollars in assets under management. This targeted acquisition will help us grow our distribution reach in a key market as we work towards our goal of becoming an Asia Pacific investment powerhouse.”
AMP Capital Investors has been working on increasing its reach to institutional investors and set up a team in Japan about a year ago.
“We have been marketing towards institutional investors, and that’s flying on the back of the success we’ve had in the retail market,” Clarke said.
AMP Capital Investors main retail offering is around Australian bond funds and listed property funds. However, Clarke sees a greater opportunity for infrastructure in the institutional investor market.
“We see with the way asset portfolios are being run by pension funds globally, there is a move to diversify. The Japanese funds really have not moved into the infrastructure investing in a large way, so we are a little bit pioneering the market there in terms of initially education and then hopefully investment.”
